SECURITIES

State, Local Governments Not Giving Up on Derivatives: New steps are being taken to guard against losses after a spate of big financial mishaps among government agencies that handle public funds. The most recent victims of derivatives--Connecticut, with a $25-million loss, and Wisconsin, which lost $95 million--were considered unlikely candidates for such problems because they were known for their conservative well-managed funds. As a result of the turmoil, investors are reassessing their investment policies to avoid future derivatives-related calamities, according to Leslie Rahl, a principal at the derivatives consulting firm Capital Market Risk Advisers.