1. Introduction; 2. Definition and typology; 3. The economic functions of derivatives markets; 4. Market completion; 5. Derivatives and price stabilization; 6. Derivatives and price destabilization; 7. The effects of derivatives on prices of the underlying: a synthesis; 8. Causes of the rapid growth in derivatives trading: a historical perspective; 9. The role of derivatives in the global financial crisis of 2008; 10. Models and their effects on markets; 11. Derivatives and emerging markets; 12. Derivatives and emerging markets; 13. Regulation of derivatives; 14. Derivatives and development: a critique; 15. Regulatory policy for derivatives: a pragmatic approach.