The federal court order has effectively prohibited the two defendants from trading on the futures markets
The cut-off point is November 1, 1999, when the local authority allowed the opening up of Taiwan futures markets
to the foreign investors (QFIIs).
However, financial traders such as hedge funds and commodity index traders also face their own need to control risk and may have to reduce risk exposure in commodity futures markets
when their risk-bearing capacity falls as a result of reasons outside of commodity markets.
Following Stoll and Whaley (1990), the following Multiple Regression (Simultaneous I equation modelling, two stage least square) is estimated to-examine the nature of lead-lag relationship between returns in the spot and the futures markets
as presented below.
Commodity Futures Trading Commission Chairman Gary Gensler said on Thursday his exchange was examining cross-market linkages in its flash crash probe, as well as the way sharp movements in cash equities markets currently trip breakers in the futures markets
Although this paper is not enough to show all opportunities of hedging and futures markets
, it points out an idea how hedging works as a method of changing textile organization's risk management.
Several studies report that futures markets
lead spot (cash) markets from a few seconds to hours (Kawaller, Koch, and Koch 1987; Stoll and Whaley 1990).
Transactions cost advantages, however, would favor futures markets
as the optimal venue for conveying information of informed traders/speculators.
Coverage focuses on "events that impact the futures markets
," Dow Jones said, and includes reviews of activity in such CBOT markets as corn, ethanol, soybeans, wheat and metals.
Asay, 1983, "A Note on the Design of Commodity Option Contracts--A Reply", Journal of Futures Markets
can affect spot markets by allowing producers to hedge, providing liquidity to holders of the commodity, providing information about the future price, and facilitating coordination of producers' decisions about future production.