Conclusion: Banging the Close

David Ress ()
Additional contact information
David Ress: University of New England

Chapter Chapter 8 in Market Manipulation and The Price of Eggs, 2025, pp 119-141 from Springer

Abstract: Abstract Henner’s close-of-trading drama in the egg futures market would become a not uncommon way of generating a artificial price in derivatives trading, particularly in derivatives with underlying assets that were also derivatives. While the Commodity Futures Trading Commission was able to sustain manipulation cases in some of these situations (in electricity and natural gas futures) it failed in a case involving interest rate futures in a decision that essentially held there was no such thing as an artificial price as long as both sides of a deal knew, or thought they knew, what they were doing. The point here: the dynamics of a competitive derivative market primarily functioning for price discovery, whether in egg futures or interest rates, can force prices to a trader’s predetermined goals that have nothing to do with the price of an underlying asset.

Keywords: Futures market; Artificial prices; Market manipulation; Derivatives (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-87171-9_8

Ordering information: This item can be ordered from
http://www.springer.com/9783031871719

DOI: 10.1007/978-3-031-87171-9_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().