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The development of over-the-counter structured products has provided foreign investors with a way into Russia's bond and currency markets. Ted Kim reports on the instruments on offer to foreign institutions, not just in Russia, but in many of eastern Europe's markets

One year ago, if a speculator wanted to take a position on eastern Europe, there were few options available. In the case of a western supplier wanting to hedge against non-payment from a state-owned buyer, options were non-existent.

All this has changed in past few months with the development of a variety of over-the-counter (OTC) structured products. Not only can structured products offer a convenient way to hedge investments, OTC products offer an alternative to Russia’s electronic custodial and settlement system.

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