Bohl, Martin T.; Salm, Christian A.; Wilfling, Bernd - Center for Quantitative Economics (CQE), … - 2009
index futures trading does not destabilize the spot market. This nding is robust across 3 stock market indices and is …This paper investigates the impact of introducing index futures trading on the volatility of the underlying stock … market. We exploit a unique institutional setting in which presumably uninformed individuals are the dominant trader type in …