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February 29, 1996|Times Staff and Wire Reports

Derivatives Grow, Even as Some Firms Drop Out: Trading in the $14-trillion derivatives market rose 15% in the U.S. in 1995 and was up 21% in Canada, according to a survey by Greenwich Associates, a consulting firm based in Greenwich, Conn. That was in the face of a 22% dip in the number of U.S. corporations using derivatives and a drop of 18% in Canadian companies buying and selling them, Greenwich said in its survey. Corporations that have remained in the market now are more careful about their trading and are better able to understand these often tricky financial contracts, according to the survey. Those who were only dabbling in derivatives to turn a quick profit have dropped out, accounting for much of the drop-off in the number of corporations using them.

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