Thursday, July 01, 2010

Exchange traded products

An important reform under the reforms being considered in America is for certain types of derivatives to be traded on an exchange. This ensures that the contracts and prices are transparent and that the financial risks are properly accounted for.

I encourage invesrors to invest in exchange traded products, for transparency and fair pricing, and to avoid all types of structured products that are issued by financial institutions (to achieve their sales and profit targets) that are not traded on an exchange.

Read Practical Guide on Financial Planning.

Tan Kin Lian

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