The course examines the legal, regulatory, trading and risk management aspects of the $600 trillion notional over-the-counter, or privately negotiated, derivatives market. Derivatives have been blamed for causing or at least contributing to the current economic crisis. This course offers students the opportunity to understand how various derivative products are designed, traded and risk-managed and what role regulators play in the derivatives industry. In addition, students focus on understanding key legal contracts that underpin the global derivatives industry, in particular focusing on the ISDA© Master Agreement and Credit Support Annex, as well as documentation supporting credit derivatives. Students also consider the shifting regulatory landscape for financial institutions and hedge funds, as well as assess decisions to bail out various financial institutions. In particular, the bankruptcy of Lehman Brothers and the government conservatorship of AIG are examined.