Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study

This study analyzes impacts of the adoption of a new type of derivatives instrument in the Asian stock market- the implied volatility futures. Furthermore, the analysis is carried on to the preferences of hedging tools in the two pioneering markets in such adoption, Hong Kong and Japan. Unlike other...

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Main Author: Pham, Duc Nam Trung
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27184/
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author Pham, Duc Nam Trung
author_facet Pham, Duc Nam Trung
author_sort Pham, Duc Nam Trung
building Nottingham Research Data Repository
collection Online Access
description This study analyzes impacts of the adoption of a new type of derivatives instrument in the Asian stock market- the implied volatility futures. Furthermore, the analysis is carried on to the preferences of hedging tools in the two pioneering markets in such adoption, Hong Kong and Japan. Unlike other conventional derivatives, the relationship derivatives on volatility and its underlying assets is almost impossible to be modeled, thus creates several difficulties in pricing as well as researching. This paper however is not focused on the complex aspect of modeling such derivatives but more to the event of the introducing of the trading activity. In particular, this will be at first an event study the issue of futures based on the NIKKEI 225 VI Index in Japan and VHSI Index in Hong Kong which are the Asian version of the famous Chicago Board Options Exchange’s VIX Index. Besides, it will also show a causal analysis of those futures contracts and their underlying Indexes. Therefore, the study will give a more insightful about the relationship between futures trading, structural flow of information and volatility in Asian market.
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spelling nottingham-271842017-10-19T13:51:45Z https://eprints.nottingham.ac.uk/27184/ Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study Pham, Duc Nam Trung This study analyzes impacts of the adoption of a new type of derivatives instrument in the Asian stock market- the implied volatility futures. Furthermore, the analysis is carried on to the preferences of hedging tools in the two pioneering markets in such adoption, Hong Kong and Japan. Unlike other conventional derivatives, the relationship derivatives on volatility and its underlying assets is almost impossible to be modeled, thus creates several difficulties in pricing as well as researching. This paper however is not focused on the complex aspect of modeling such derivatives but more to the event of the introducing of the trading activity. In particular, this will be at first an event study the issue of futures based on the NIKKEI 225 VI Index in Japan and VHSI Index in Hong Kong which are the Asian version of the famous Chicago Board Options Exchange’s VIX Index. Besides, it will also show a causal analysis of those futures contracts and their underlying Indexes. Therefore, the study will give a more insightful about the relationship between futures trading, structural flow of information and volatility in Asian market. 2014 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27184/1/PhamDucNamTrung.pdf Pham, Duc Nam Trung (2014) Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Pham, Duc Nam Trung
Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study
title Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study
title_full Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study
title_fullStr Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study
title_full_unstemmed Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study
title_short Implied Volatility Futures Trading Activity and Impacts on Asian Stock Market: An Empirical study
title_sort implied volatility futures trading activity and impacts on asian stock market: an empirical study
url https://eprints.nottingham.ac.uk/27184/