From Mr Christopher Georgiou.

Sir, George Soros (“My three steps to financial reform”, June 17) argues that all derivatives should be required to become “homogenous” and “standardised”. However, financial risk is neither homogenous nor standardised, and derivative instruments designed and customised to mitigate that risk would be imperfect hedges as a result. Properly customised derivatives make a positive contribution to the financial stability of the users, creating predictability of cashflows in an unpredictable world that benefits companies and other users.