Nature Bites Back In New, Messy World of Derivatives

"Complex interactions between banks and within portfolios dominate the pricing of derivatives, as opposed to the behavior of the assets the contracts are supposedly ‘derived’ from. Maybe that’s nature’s way of telling us to make the banks, and the market simpler."

http://www.nickdunbar.net/articles/nature-bites-back-in-new-messy-world-of-derivatives/