The experience of hedging in derivatives markets要点解析.ppt

The experience of hedging in derivatives markets Chile CONTENTS ONE Background TWO AFPs system THREE Derivative markets FOUR The empirical relationship FIVE Conclusion Background PART ONE Background Prior to the onset of the 2008 financial crisis, domestic FX derivatives markets（外汇衍生品市场） in Chile had gained depth and liquidity, boosted by the growing hedging needs of private pension funds. During the crisis, Chile suffered significantly less stress than other EMEs（新兴市场国家）. PART TWO AFPs system Reformation New system New types of assets In the early 1980s， Chile substantially reformed its pension system. It moved from a defined-benefit to a privately managed defined-contribution system. Reformation in 1980s Pension fund assets grew rapidly. Regulations on the types of asset eligible for pension funds were liberalized over time. New types of assets were invested in the domestic stock market and in foreign assets . Liberalizing regulation The new system had brought a rapid accumulation and diversification of investable resources, and the emergence of a new financial sector that by the mid-2000s had built up a large and positive net foreign asset position. Net foreign asset position The pension funds system of Chile The pension funds system of Chile Pension funds developed a large positive net foreign asset position. The pension funds system of Chile Net international investment position in EMEs by sector1 End of 2007, as a percentage of GDP 1 Data for Korea, Malaysia, Peru and the Philippines are not available with same level of disaggregation. 2 Simple median of the Czech Republic, Hungary, India, Indonesia, Poland, Russia and Thailand. Sources: Central Bank of Chile; IMF. One of the two countries among major emerging markets that have a financial (non-bank) private sector with a very large net long foreign asset position as a fraction of GDP . PART THREE Derivative markets and FX risk in Chile Chilean derivative ma