Purposeful Unintended Consequences with Innovative Derivatives

We suggest that the use of traditional market, outcome, and process controls for innovative derivatives trading may not provide adequate safeguards for clients, investors, or the entire financial system to control “purposeful unintended consequences.” We propose a more cautious examination of this aspect of the financial system using a combination of perspectives from finance and technology/innovation management. © 2001 John Wiley & Sons, Inc.