Futures market hedging efficiency in a new futures exchange: Effects of trade partner diversification
Journal article, Peer reviewed
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https://hdl.handle.net/11250/2648126Utgivelsesdato
2019-12Metadata
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Originalversjon
Øglend, A., Straume, H-M. (2019) Futures market hedging efficiency in a new futures exchange: Effects of trade partner diversification. The Journal of Futures Markets, 40(4), pp 617-631. 10.1002/fut.22088Sammendrag
This paper uses transaction data to examine hedging efficiency in a new futures exchange; the Fish Pool salmon futures exchange in Norway. The paper utilizes data on firm level exporter/importer transaction prices to quantify firm level futures hedging efficiency. This allows us to address heterogeneity in firm level hedging efficiency. The main result of this paper is that larger firms with better trade partners diversification experience better hedging efficiency using the futures, which encourages them to participate in the futures market. Results are discussed in light of recent declines in participation in the salmon futures exchange.
Beskrivelse
This is the peer reviewed version of the following article: Øglend, A., Straume, H-M. (2019) Futures market hedging efficiency in a new futures exchange: Effects of trade partner diversification. The Journal of Futures Markets, 40(4), pp 617-631., which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/fut.22088. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.