“Derivatives contracts of public entities: characteristics and purpose” (I contratti derivati stipulati dalle Amministrazioni pubbliche: caratteristiche e finalità” is the title of Focus no. 3 of 9 February 2015 by Emilia Marchionni and Maria Rosaria Marino of the PBO. It offers a brief description of critical issues that have emerged with regard to derivatives contracts entered into by public entities and underscores that fact that the inconsistent publication of information may have increased the uncertainty surrounding such transactions. The Focus discusses the available data on the market value of the contracts entered into by central government departments and local governments, examining the changes made in recent years to the statistical treatment of derivatives in the public accounts. The Focus also presents a comparative analysis of the market value of derivatives transactions undertaken by public entities in the main European countries and the different levels of information provided to the public. Finally, the authors examine the potential impact of the rules on bilateral collateral posting introduced with the 2015 Stability Act.