Previously, counterparties might simply have borne these risks or elected not to undertake the business that entailed the risks. Derivatives are now seen as an essential tool that market participants have for managing risk.
There have been instances of off-market transactions especially in the OTC segment involving institutional clients of the Banks/PDs. The PDs, being the responsible players in the market, have to take appropriate steps to educate and sensitize their clients so as to refrain from such unethical trading practices.