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  1. Surveys
  2. 2013
  3. April
  4. D
  5. Derivatives usage survey
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Exit Survey
 
 
I. Use of Derivatives
1. Does your firm buy or sell derivatives (forwards, futures, options, swaps)?
 
a. Yes-Please continue with the questionnaire.
 
b. No-Please stop and return your questionnaire.
 
 
II.Risk Management Policies
2. How would you characterize your decision-making process in the following areas?
Centralized Decentralized Not Certain
a. Risk management policy (what to hedge and why)
b. Risk management strategy (what instruments)
c. Risk management execution (when to transact)
 
 
III.Which Derivatives Are Being Used and Why?
3. What kinds of derivatives are you using to manage your exposures to financial price risk? (tick as many as are appropriate.)
To manage FX exposure To manage Interest rate exposure To manage Commodity exposure To manage Equity market exposure Not Used
a. OTC forwards
b. Exchange-traded futures
c. Swaps
d. OTC options
e. Exchange-traded options
 
 
4. How often does your firm use derivatives to do any of the following?
Frequently Seldom Never Don't Know
a. Reduce funding costs by arbitraging the markets?
b. Reduce funding costs by taking a view?
c. Hedge the balance sheet?
d. Hedge foreign dividends?
e. Hedge contractual commitments?
f. Hedge anticipated transactions?( <12 months)
g. Hedge anticipated transactions?( >12 months)
h. Hedge economic/competitive exposure?
 
 
5. If, in Question 4, you indicated that your firm uses derivatives to hedge, please indicate what the firm is trying to achieve with the hedge. Rank by placing a 1 by the most important, a 2 by the next most important, a 3 by the least important item, or a 0 if not at all important.
Rank 1 Rank 2 Rank 3 Rank 0
a. Minimize fluctuations in quarterly accounting earnings
b. Minimize fluctuations in real cash flows
c. Protect the appearance of the balance sheet
 
 
 
6. To manage exposure due to contractual commitments, which instrument(s) do you use? (tick as many as apply.)
 
a. Forwards and futures
 
b. Options
 
c. Swaps
 
d. Do not manage exposure

 
 
 
7. To manage exposure due to anticipated cash flows, which instrument(s) do you use? (tick as many as apply.)
 
a. Forwards and futures
 
b. Options
 
c. Swaps
 
d. Do not manage exposure

 
 
8. What concerns you about using derivatives? (Please indicate degree of concern with each.)
No Concern Low Moderate High
a. Credit risk
b. Accounting treatment
c. Transaction costs (bankers' fees)
d. Liquidity risk
e. Lack of knowledge about derivatives
f. Difficulty understanding the firm's exposure
 
 
IV.Control and Reporting Procedures
9. What is the lowest-rated counterparty with which you will deal?
AAA Rated AA Rated A Rated BBB Rated Less than BBB Dont Know
a. Maturities 12 months and less
b. Maturities more than 12 months
 
 
10. Is each of the following a primary, a secondary, or not a source of derivatives?
Primary Secondary Not a Source
a. Commercial banks
b. Investment banks
c. Insurance companies
d. Exchanges/brokers
e. Other (Specify): not specified