Financial derivatives$$ and their markets help facilitate the flow of funds from surplus units $($lenders$,$ savers$)$ to deficit units $($borrowers$,$ spenders, investors$)$ by :

Financial derivatives$$ and their markets help facilitate the flow of funds from surplus units $($lenders$,$ savers$)$ to deficit units $($borrowers$,$ spenders, investors$)$ by :

increasing systemic risk to the financial system when they are used by hedge funds for the purposes of leverage.

regulatory arbitrage to avoid the costs of deposit insurance.

preventing firms from investing in spot markets for commodities.

by transferring risk from those market participants who cannot bear the risk to those who can.