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Derivatives go back to the drawing board

Simplicity and risk control are paramount

When the most powerful man in the world says he does not “want every single college grad with mathematical aptitude to become a derivatives trader”, it is a clear signal that the industry is out of favour.

US President Barack Obama's verdict on derivatives, in an interview with the New York Times Magazine last month, follows a year during which derivatives have been portrayed as weapons of mass financial destruction.

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