Derivatives do not reflect risk but actively produce contingencies and value

Evidence

Appadurai (2016) proposes that this operation of derivatives is unique because it does not merely reflect but also produces the contingencies characterizing modern contracts, relations, and promises traded—and ultimately value itself. It does so through providing “a continuous and reliable source of collective effervescence through which the valuation of underlying assets can be enhanced and leveraged” (99). — Aris Komporozos-Athanasiou, Speculative Communities, 390

Categorization

• XREF: The performative/producing-rather-than-reflecting logic anticipates how speculation generates — not just prices — the future states of dating, politics, and self-presentation. — connects to: Derivatives inverted from insurance into engines that increase volatility exposure. — Aris Komporozos-Athanasiou, Speculative Communities: Living with…, 91; Financial asset prices reflect speculative circulation, not underlying real value — Max Haiven, Cultures of Financialization, 80; Derivatives are speculative techniques betting on future asset-price movements — Max Haiven, Cultures of Financialization, 153 (+7 more)
• corroborated: 2 independent passages support this claim — Aris Komporozos-Athanasiou, Speculative Communities: Living With…, 390