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| Author | : Allan Hodgson |
| Publisher | : |
| Total Pages | : 21 |
| Release | : 1989 |
| Genre | : Futures |
| ISBN | : 9780858348332 |
| Author | : Gary Robinson |
| Publisher | : |
| Total Pages | : 48 |
| Release | : 1993 |
| Genre | : Finance |
| ISBN | : |
| Author | : Chandra Bhola |
| Publisher | : Ary Publisher |
| Total Pages | : 0 |
| Release | : 2023-06-10 |
| Genre | : |
| ISBN | : 9788798623045 |
This study investigates the impact of futures trading on stock market volatility and hedging efficiency, focusing on the S&P CNX Nifty index and select stocks in India. By conducting a comprehensive analysis, this research aims to examine the relationship between futures trading activity and its influence on market volatility and the effectiveness of hedging strategies. The study utilizes empirical methods to evaluate the effects of futures trading on stock market volatility. It analyzes the S&P CNX Nifty index, which represents the broader market, and specific individual stocks to understand how futures trading impacts price fluctuations and overall market stability. Furthermore, the research assesses the hedging efficiency of futures contracts as risk management tools. It examines whether investors can effectively hedge their positions and reduce portfolio risk through futures trading. By evaluating the effectiveness of hedging strategies in the context of the Indian stock market, this study provides valuable insights for market participants. Overall, this study delves into the impact of futures trading on stock market volatility and hedging efficiency in India. By examining the S&P CNX Nifty index and select stocks, it aims to shed light on the relationship between futures trading and market dynamics. The findings contribute to the understanding of risk management practices and assist investors in making informed decisions related to hedging strategies in the Indian stock market.
| Author | : Louis O. Scott |
| Publisher | : International Monetary Fund |
| Total Pages | : 68 |
| Release | : 1990-11-01 |
| Genre | : Business & Economics |
| ISBN | : 1451944594 |
Volatility in financial markets has forced economists to reexamine the validity of the efficient markets hypothesis, and new empirical approaches have been applied to the study of this important issue in recent years. Many of the recent studies have found evidence of excessive volatility. In the aftermath of the stock market crash of 1987 and the perceived increase in market volatility, some economists have advocated additional market regulations. Are these proposed regulations necessary and would they serve to reduce market volatility? This paper presents a review of recent studies on financial market volatility and examines the proposed regulations.
| Author | : Franklin R. Edwards |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 201 |
| Release | : 2012-12-06 |
| Genre | : Business & Economics |
| ISBN | : 9400921934 |
| Author | : Eric C. Chang |
| Publisher | : |
| Total Pages | : 60 |
| Release | : 1995 |
| Genre | : |
| ISBN | : |
| Author | : New York Stock Exchange. Market Volatility and Investor Confidence Panel |
| Publisher | : |
| Total Pages | : 396 |
| Release | : 1990 |
| Genre | : Program trading (Securities) |
| ISBN | : |
| Author | : Gary Robinson |
| Publisher | : |
| Total Pages | : 32 |
| Release | : 1993 |
| Genre | : Futures market |
| ISBN | : 9781857300376 |
| Author | : Pierluigi Bologna |
| Publisher | : |
| Total Pages | : |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
The impact of futures trading on the underlying asset volatility, and its characteristics, is still debated both in the economic literature and among practitioners. The aim of this study is to analyse the effect of the introduction of stock index futures on the volatility of the Italian Stock Exchange. This study mainly addresses two issues: first, the study analyses whether the reduction of stock market volatility showed in the post-futures period, already pointed out in previous research, is effectively due to the introduction of futures contract. Second, whether the 'futures effect', if confirmed, is immediate or delayed with respect to the moment of the futures trading onset is tested. The results show that the introduction of stock index futures per se has led to diminished stock market volatility and no other contingent cause seems to have systematically reduced it. Further, they also suggest that the impact of futures onset on the underlying market volatility is likely to be immediate. These findings are consistent with those theories stating that active and developed futures markets enhance the efficiency of the corresponding spot markets.
| Author | : Saurabh Kumar |
| Publisher | : |
| Total Pages | : 13 |
| Release | : 2002 |
| Genre | : |
| ISBN | : |
This project attempts to investigate the effect of the introduction of Futures trading in the National Stock Exchange, India (NSE) and get insights into the effect upon the volatility of the NSE. The underlying spot market volatility is estimated using symmetric GARCH methods. Any increase in stock market volatility that has followed the onset of futures trading has generally been taken as justifying the traditional view that the introduction of futures markets induces destabilizing speculation. This has led to calls for greater regulation to minimise any detrimental effects. An alternative view is that futures markets provide an additional route by which information can be transmitted, and, therefore, increased spot market volatility may simply be a consequence of the more frequent arrival, and more rapid processing of information. Thus, futures trading may be fully consistent with efficiently functioning markets.This paper attempts to investigate the change, if any, in the volatility observed in the Indian stock market due to the introduction of futures trading. The change in the volatility is compared not only in absolute levels of volatility but also in terms of the structure of the volatility. This is done to give insights into the way the futures market is influencing the Indian spot market's volatility.
