Market risk is associated with general market variations as measured by a market index, such as the Financial Times All-Share Index or the Dow-Jones Index. Unlike SPECIFIC RISK , it is not possible to diversify market risk away, because however large the portfolio of shares held, they are all influenced by the market generally to a greater or lesser extent. Derivative products are traded on organised markets (options markets and futures markets) or over the counter: interest rate swaps, credit derivatives, FRAs. Risk approach: classification by economic characteristic. A presentation that is closer to economic reality consists in classifying products by market or by the type of risk traded. market risk framework in July 2009 (part of the “Basel 2.5” package of reforms). At the time, the Committee recognised that the Basel 2.5 revisions did not fully address the shortcomings of the framework. In response, the Committee initiated a fundamental review of the trading book regime, beginning with an assessment of “what went wrong”.