Risky business?

The market for derivatives is growing fast but so, it seems, are the errors pertaining to the extensive hedging.

"Errors in trading complex credit derivatives among Wall Street banks doubled last year, highlighting the operational risks faced by the world's biggest financial institutions in keeping track of the rapidly growing $17,000bn market.

One in every five credit derivatives trades made by big dealers initially contained mistakes, according to a survey from the industry's leading lobbying group, the International Swaps and Derivatives Association."