Over the past 10 years, financial firms have increased the size of their positions in the oil futures market. At the same time, oil prices have increased dramatically. The conjunction of these developments has led some observers to argue that financial speculation caused the run-up in oil...

We present an axiomatic formulation of the Option Pricing Theory for interest rates, completely analogous to axiomatic Quantum Mechanics. The role of the wave function is played in the financial theory by discounted zero-coupon bond prices. The theory is model-free and is linked to term...

We analyse recent developments in over-the-counter (OTC) interest rate derivatives markets using the results of the 2016 BIS Triennial Central Bank Survey. Overall, turnover in both OTC and exchange-traded markets has expanded moderately since 2013. The average daily turnover of US...