WHO RULES THE WORLDS FINANCIAL-MARKETS

Orange County, Metallgesellschaft, Procter & Gamble, and Gibson Greeti ngs all have one thing in common: all are losers in the new global der ivatives markets. Those visible losses in a market that has long been suspected of being uncertain and dangerous have raised new concerns ab out the stability of the international financial system. While some ex perts are confident that the new products can be handled safely, other s worry about investors' ability to understand the risks they are taki ng. Two new publications provide contrasting perspectives on the issue . In The Vandals' Crown: How Rebel Currency Traders Overthrew the Worl d's Central Banks, U.S. journalist Gregory J. Millman warns about the potential power of the ''vandals,'' the free marketers from Chicago wh o trade anything that can be priced. This vandalism has left an increa singly powerless empire-controlled by economic policy makers and regul ators - helpless in the face of the onslaught. The other perspective c omes from the heart of the ruling establishment: a report by the Brett on Woods Commission led by Paul Volcker, former chairman of the Federa l Reserve. The authors of Bretton Woods: Looking to the Future argue t hat regulators must defend and strengthen the markets against the spec ulative attacks of the traders. While the war has yet to be won, the b attles are fierce and the casualties numerous, as the huge losses show . Richard O'Brien, chief economist of American Express Bank, gives his perspective on the struggle, and John Calverley, American Express Ban k's chief investment strategist, writes a companion piece on the curre ncy wars between governments and the markets.