“I would say that derivatives can be financial weapons of mass destruction if they are used improperly. If they’re used properly they can be risk-reducing tools rather than risk-enhancing tools.”
This year the CBOE opened a London office in an effort to expand their reach in Europe. Matt McFarland is the head of the new outpost and also in charge of business development.
The number one issue he faces when trying to get prospective customers to trade on the CBOE is dispelling Warren Buffet’s imminently quotable quote that “derivatives are weapons of mass destruction.” Once that hurdle is out of the way, he has to placate customers fears about liquidity and counterparty risk.
In this MarketsWiki Education video, McFarland delivers a primer on those three main challenges.