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Maturity Effects in Futures Markets: Some Evidence from the City of London

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Author Info
Chamberlain, Trevor W
Abstract

This paper examines futures contracts traded in the London market for evidence of maturity effects in the variability of price and the volume of trading. Price variability is measured using a Parkinson estimator, which is based not only on daily opening and closing prices, but also on daily highs and lows. Unlike previous studies of maturity effects in futures markets, which have involved U.S. data, the present one finds little evidence to suggest that either the variability of price, or the volume of trading, is maturity dependent. Copyright 1989 by Scottish Economic Society.

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Publisher Info
Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 36 (1989)
Issue (Month): 1 (February)
Pages: 90-95
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Handle: RePEc:bla:scotjp:v:36:y:1989:i:1:p:90-95

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  1. Daal, Elton & Farhat, Joseph Basheer & Wei, Peihwang P., 2003. "Reexamining the maturity effect using extensive futures data," Working Papers 2003-06, University of New Orleans, Department of Economics and Finance. [Downloadable!]
  2. Daal, Elton & Farhat, Joseph Basheer & Wei, Peihwang P., 2004. "Does futures exhibit maturity effect? New evidence from an extensive set of US and foreign futures contracts," Working Papers 2004-03, University of New Orleans, Department of Economics and Finance. [Downloadable!]
  3. Gerard Gannon & Chi-Ying Chang, 2007. "Regulatory Change and Micro Structure Effects in SPI Futures," Accounting, Finance, Financial Planning and Insurance Series 2007_08, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
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