Commodity Etfs In The Japanese Stock Exchanges
AbstractThis paper analyzes commodity investment trusts and commodity ETFs as a method for investing in commodities, which are expected to be an important tool for individual investors to participate in commodity investments. The "Financial Big Bang" reforms during the latter half of the 1990s substantially transformed the Japanese financial system, which had been strictly regulated. Recently, thanks to financial deregulation, there are 30 commodity ETFs listed on the Tokyo Stock Exchange or the Osaka Securities Exchange. However, this paper finds that most of commodities ETFs are thinly traded. So, we need to implement further policy as soon as possible in order to encourage Japanese investors to participate in the commodity ETF market. Otherwise, investors will lose their interests in Japanese commodity ETF markets. Finally, this paper investigates whether new commodity ETFs compete against traditional commodity future markets. The paper finds that growing commodity ETFs increase transactions in traditional commodity futures markets, such as the Tokyo Commodity Exchange. Encouraging more commodity ETFs transaction may lead to active arbitrages between ETFs markets and commodity future markets. In sum, our results suggest that commodity ETFs are beneficial to traditional commodity future markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by ASERS Publishing in its journal Journal of Advanced Studies in Finance.
Volume (Year): II (2011)
Issue (Month): 1 (June)
Contact details of provider:
Web page: http://www.asers.eu/journals/jasf.html
Commodity futures; ETF; Japan; stock markets; index.;
Other versions of this item:
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Stefanescu).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.