IDEAS home Printed from https://ideas.repec.org/p/ags/n13417/285868.html

Is Pit Closure Costly for Customers? A Case of Livestock Futures

Author

Listed:
  • Gousgounis, Eleni
  • Onur, Esen

Abstract

Motivated by CME’s decision to close down most of the futures pits in July of 2015, we analyze the changes in the livestock futures market between 2014 and 2016. The livestock futures market, which had an active presence at the pit prior to the closure, has recently exhibited unprecedented price fluctuations. A simultaneous increase in the bid ask spread has raised concerns over the availability or liquidity in this market. The focus of our study is to analyze whether liquidity has changed for customer orders after the futures pit closed. In more detail, we track customer orders and evaluate their execution quality. We investigate whether execution costs for such trades have increased after the futures pits closed. In addition, we also examine whether customers have changed their trading behavior by placing more aggressive orders.

Suggested Citation

  • Gousgounis, Eleni & Onur, Esen, 2017. "Is Pit Closure Costly for Customers? A Case of Livestock Futures," 2017 Conference, April 24-25, 2017, St. Louis, Missouri 285868, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:n13417:285868
    DOI: 10.22004/ag.econ.285868
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/285868/files/Gousgounis_Onur_NCCC134_2017.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.285868?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:n13417:285868. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.farmdoc.illinois.edu/nccc134/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.