Evaluating Futures Exchanges in Liberalising Economies

Leuthold, Raymond M.

doi:10.1111/j.1467-7679.1994.tb00061.x

Cited by 10 publications

(11 citation statements)

References 18 publications

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“…However, the costs of such a policy are very high, not only in simple cash terms but also in opportunity cost terms, especially to an economy seeking rapid but sustainable growth. As Leuthold (1994) argues, in many respects the advantages of trading on offshore markets far outweigh the costs and especially where the commodity concerned is internationally traded, then there really is only one option and that is to trade on well-established, highly-liquid offshore exchanges.…”

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confidence: 99%

Commodity futures markets in LDCs: a review and prospects

Morgan¹

2001

prog dev studies

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractRecent moves by the World Bank to devise market-based approaches for dealing with commodity price risk provides a fresh impetus for research in the area of commodity futures markets as a policy option. Since the collapse of the International Commodity Agreements, there has been little progress in finding a solution to the perennial problem of price risk arising from price volatility. This paper aims to provide a background to the more general issue of development and growth in less developed countries (LDCs) by examining past and current policy attempts to reduce the effects of price volatility in primary commodity markets.

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Commodity futures markets in LDCs: a review and prospects

Morgan¹

2001

prog dev studies

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“…However, the existence of a futures market does not necessarily mean that it will be successful. The preconditions for the success of a futures market need to be analyzed and the constraints must be identified and examined (Leuthold, 1994).…”

Section: Brazilian Electricity Futures Marketmentioning

confidence: 99%

Framework to structure the Brazilian electricity futures market

Bohl

Campani

et al. 2021

IJESM

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Purpose This study aims to formulate a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market. Design/methodology/approach This exploratory study formulates a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market. Findings The results show a positive economic outcome for the creation of the Brazilian futures electricity market. Originality/value The main feature in this work is to summarize a framework to set up the Brazilian electricity futures market applying mechanism design, applicable in other countries. The features of the mechanism are the space of expected results (Z), the strategies to survey the environmental space (θ) and the mechanism design – messages space (M).

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“…Consequently, the predictability of the basis is crucial for attracting hedgers, as increased basis risk impairs the risk management capacity of futures trading (Leuthold 1994;Garcia and Sanders 1996).…”

Section: Institutional Backgroundmentioning

confidence: 99%

The role of emerging economies in the global price formation process of commodities: Evidence from Brazilian and U.S. coffee markets

Bohl

Gross

Souza

2019

International Review of Economics & Finance

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This paper examines the role of the Brazilian futures exchange, BM&F Bovespa, in the global price formation process of Arabica coffee. Using a multivariate GARCH model we find bi-directional information transmission in terms of spillover effects between the BM&F Bovespa futures contract for Arabica coffee and the 'Coffee C' futures contract traded at the Intercontinental Exchange (ICE) in New York. Moreover, our empirical results indicate that the influence of the BM&F Bovespa futures market on the ICE futures market increased during the 2010-2012 boom in coffee prices, suggesting a greater role of local information for volatility dynamics during this period. We also show that local Brazilian spot markets incorporate information from both the domestic and the foreign futures market. Taken together, our findings highlight the great relevance of the BM&F Bovespa futures market in the global price formation process of Arabica coffee. JEL Classification: G12, G13, G14, G15, Q02

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Evaluating Futures Exchanges in Liberalising Economies

Cited by 10 publications

References 18 publications

Commodity futures markets in LDCs: a review and prospects

Commodity futures markets in LDCs: a review and prospects

Framework to structure the Brazilian electricity futures market

The role of emerging economies in the global price formation process of commodities: Evidence from Brazilian and U.S. coffee markets

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