Effects of the Covid-19 pandemic on derivatives markets: Evidence from global futures and options exchanges

5Citations
Citations of this article
27Readers
Mendeley users who have this article in their library.
Get full text

Abstract

We examine key developments in trade-related activity on global derivatives markets during the Covid-19 pandemic. We first document significant increases in volumes and open interest. Drawing upon techniques from network theory, we next find greater market interconnectedness and notable changes in market centrality. For US exchanges, we examine their response to the increased market uncertainty and find large and more frequent changes to margin requirements. We also find a considerable drop in trader participation driven mainly by noncommercial traders along with an increase in the percent of open interest held by commercial shorts and noncommercial longs.

Cite

CITATION STYLE

APA

Emm, E. E., Gay, G. D., Ma, H., & Ren, H. (2022). Effects of the Covid-19 pandemic on derivatives markets: Evidence from global futures and options exchanges. Journal of Futures Markets, 42(5), 823–851. https://doi.org/10.1002/fut.22310

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free