For lawmakers who will start thrashing out financial reform later this week, the most important issue is what to do about derivatives. Global economic stability hinges on managing the inherent ...

It also underscored a trend in which financial firms and a range of companies use derivatives, leverage and other tools of modern finance to place bets on grain, gold, crude oil and other commodities.

Derivatives are financial contracts whose value is derived from some underlying asset. These assets can include equities, bonds, exchange rates, commodities, residential and commercial mortgages.