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HMRC internal manual

Corporate Finance Manual

HM Revenue & Customs
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Understanding corporate finance: derivative contracts: overview


This section of the Corporate Finance Manual explains the commercial background to the use of derivatives.

CFM13020 onwards explains what a derivative is, the concept of underlying assets, how derivative contracts are settled and the sort of contracts and documentation they use.

CFM13110 onwards explains the main types of derivative contract (forwards, futures, swaps and options, and ‘exotics’).

CFM13270onwards explains how derivatives are used to manage, or ‘hedge’, risk.