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Derivatives Market: A Survey

Author

Listed:
  • Somaiyah Alalmai

    (Department of Finance, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Saudi Arabia.)

Abstract

Our research paper surveys prior research on derivatives markets. We mainly review the literature investigating the impact of introducing derivatives markets on the underlying market and the overall economic development. Particularly, we summarize papers investigating the effects on the spot market liquidity, spot market volatility, and the price discovery process. We review the literature on several countries, but the survey paper appears to be concentrated on Saudi Arabia. Our paper contributes to the literature and sheds light on introducing the derivatives market in Saudi Arabia. This survey is useful to policymakers and investors as well.

Suggested Citation

  • Somaiyah Alalmai, 2023. "Derivatives Market: A Survey," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 101-106, November.
    • Handle: RePEc:eco:journ1:2023-06-12
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    References listed on IDEAS

    as
    1. Haiqiang Chen & Qian Han & Yingxing Li & Kai Wu, 2013. "Does Index Futures Trading Reduce Volatility in the Chinese Stock Market? A Panel Data Evaluation Approach," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 33(12), pages 1167-1190, December.
    2. repec:wyi:journl:002169 is not listed on IDEAS
    3. Viviana Fernandez, 2006. "Emerging Derivatives Markets: The Case of Chile," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 42(2), pages 63-92, April.
    4. Sung C. Bae & Taek Ho Kwon & Jong Won Park, 2009. "Derivatives trading, volatility spillover, and regulation: Evidence from the Korean securities markets," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 29(6), pages 563-597, June.
    5. Chin‐Ho Chen & Huimin Chung & Shu‐Fang Yuan, 2014. "Deviations from Put–Call Parity and Volatility Prediction: Evidence from the Taiwan Index Option Market," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 34(12), pages 1122-1145, December.
    6. Coutinho, João Ricardo Ribeiro & Sheng, Hsia Hua & Lora, Mayra Ivanoff, 2012. "The use of Fx derivatives and the cost of capital: Evidence of Brazilian companies," Emerging Markets Review, Elsevier, vol. 13(4), pages 411-423.
    7. Atilgan, Yigit & Demirtas, K. Ozgur & Simsek, Koray D., 2016. "Derivative markets in emerging economies: A survey," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 88-102.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic Development; Emerging markets; Derivatives; Risk management; GCC countries; Saudi Arabia; Volatility;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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