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Securities, Options and Futures Consultants

Futures and Derivatives ...

The fundamental purpose of futures markets differs from that of securities markets. Rather than capital formation, these markets exist for the purpose of price discovery and hedging (risk transfer). Similarly other derivative products allow even finer control over the process of risk transfer.

Accordingly, it is no surprise that investment disputes involving futures and derivatives have significant differences from those with securities such as stocks and bonds, including the governing entities, the relevant regulations, the venues for resolution of disputes and, by the very nature of such instruments, differing trading strategies. Such strategies have more complex objectives than simple income or capital appreciation. Further, when used for speculation, such financial instruments usually entail risk factors that may not be fully appreciated by the typical market participant.

MCC has had significant involvement over a period of more than 20 years with a broad range of consulting assignments and expert witness cases involving futures, options, swaps and forwards, which are the most common types of financial derivatives. While most trading involves fairly straightforward versions of these basic instruments, there are variations and combinations of these devices that can lead to complicated and sophisticated strategies and products that may be difficult to understand, measure and to manage. When losses and disputes do occur, it is often challenging to analyze the trading and rationale that led to such losses, as well as calculating and substantiating the resulting damages.

Extensive experience as derivatives and futures expert witnesses has given MCC the particular knowledge and insight to comprehend and help resolve such disputes. We are especially well versed in strategies leading to settlement of these cases, as well as with how to present such cases in arbitration or litigation that entails the challenge of presenting relatively complex material to a jury or other trier of fact.