In this article, I investigate the impacts of futures and options markets on the volatility of the underlying market … previous findings. it suggests that the impacts on the spot market volatility depends on the quality of new information … generated by derivatives trading. Futures market reduces spot market volatility by providing new, material information, but …

This paper investigates how the introduction of foreign exchange futures has an impact on spot volatility and considers … the contemporaneous and dynamic relationship between spot volatility and foreign exchange futures trading activity … decreases spot volatility. It also increases the rate at which new information is impounded into spot prices but decreases the …