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Success Factors of Financial Derivatives Markets in Asia

Author

Listed:
  • Trin Sittisawad

    (AEC Securities Public Company Limited)

  • Pariyada Sukcharoensin

    (National Institute of Development Administration)

Abstract

The objective of this study is to investigate the success factors of financial derivatives markets in Asia. The selected countries include Thailand, Malaysia, Singapore, South Korea, Japan and Hong Kong. The success factors of financial derivatives markets in Asia are examined by employing the panel regression. The empirical results show that size, volatility, and liquidity of spot market are significant factors for the success of financial derivatives markets in sample countries. Further, tick size, contract size, and option-type also enhance trading volumes while product age is not statistically significant. The results from this study provide important implications in developing the financial derivatives market which plays an important role in the capital market.

Suggested Citation

  • Trin Sittisawad & Pariyada Sukcharoensin, 2018. "Success Factors of Financial Derivatives Markets in Asia," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 25(2), pages 71-86, June.
    • Handle: RePEc:kap:apfinm:v:25:y:2018:i:2:d:10.1007_s10690-018-9239-4
    DOI: 10.1007/s10690-018-9239-4
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    References listed on IDEAS

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    More about this item

    Keywords

    Asia; Derivatives market; Financial derivatives; Success model;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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