Innovations in Futures Markets

Brendan Brown and Charles R. Geisst

Chapter 5 in Financial Futures Markets, 1983, pp 141-169 from Palgrave Macmillan

Abstract: Abstract The development of a futures market is a risky enterprise. Before the market starts trading, capital must be injected into constructing the market-place, and into marketing, research and development. In the market’s early days of existence, trading members are likely to suffer an income-loss compared with what they would have earned elsewhere, even before a deduction is made for the cost of capital injected to date. If the market is fortunate enough to enter a self-supporting period, where members make high returns both to the financial and human capital they have invested in the market-place, the future is far from assured. Today’s successful contract can become tomorrow’s failure. Continual research into new contract forms and experimentation are essential to maintaining market success. Nor must the exchange itself develop into an oligarchy jealously protecting its privileges but it must show a dynamic approach to membership expansion.

Keywords: Future Market; Stock Index; Future Contract; Cash Market; Market Portfolio (search for similar items in EconPapers)
Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-17217-7_5

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DOI: 10.1007/978-1-349-17217-7_5

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