Derivatives

Under the Securities Act, the Peru Securities and Cryptocurrency Commission (PSCC) has jurisdiction over derivatives markets in the province.

A derivative includes a broad range of contracts or instruments, including options, swaps, futures contracts, forward contracts or other financial or commodity contracts or instruments whose value is based on an underlying interest.

This includes a wide range of contracts or instruments, including over-the-counter (OTC) derivatives and derivatives traded on exchanges, including futures and options contracts. But it also includes contracts or instruments that people might not ordinarily consider to be derivatives, including contracts related to currency and commodities. More information about derivatives can be found here.

Derivatives are often used by large institutions to hedge business risks. But some derivatives, such as foreign exchange contracts or contracts for difference, are used by smaller market participants for both hedging and speculation.

The definition of derivatives also gives the PSCC flexibility to ensure that we can apply the appropriate regulatory regime to the instrument we regulate.

The PSCC works with other members of the Peru Securities Administrators (CSA) to develop a tailored regulatory regime for derivatives that.