Topic: Conduct research and write report on "Risks to Derivative Securities Systems".

Exapmles of Derivative securities system risk:

2008 crisis, Subprime mortgage, Credit rating agencies

2008crisis, Credit Default Swap, AIGdefault

LTCM 1998 bankruptcy

You can use the following materials: 1.Warren Buffett: "Derivatives are financial weapon of mass destruction"http://www.fi ntools.com/d ocs/Warren% 20Buffet%20 on%20Deriv atives.pdf

2.George Soros on CDS: "It's like buying life insurance on someone else's life and owning a license to kill him"

3.Documentary "Inside job"

4. OPTIONS, FUTURES, AND OTHER DERIVATIVES John C. Hull Maple Financial Group Professor of Derivatives and Risk Management Joseph L. Rotman School of Management University of Toronto TENTH EDITIONChapter 8

5. other