Asian Derivative Markets: Research Issues

Authors

  • Shamsher M Universiti Putra Malaysia, Malaysia
  • Taufiq H. Universiti Putra Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijbf2008.5.1.1

Keywords:

Derivative markets, Futures markets, Price risk, Commodities futures, Asian markets

Abstract

Theory suggests that the introduction of derivative market in a market with spot trading completes the market-based price discovery process. There are 19 derivative markets in Asia. Derivative trades in such markets help to hedge away the risk of price changes in the spot markets at very low costs. Commodity futures instruments are also needed to hedge away price changes in real sector just as financial futures does this function for the financial sector. In this paper, we examine the current status of selected commodity and financial derivative markets in Asia. It suggests that the more industrial/advanced economies have developed liquid commodities markets, and few of them have also developed active financial derivative markets. But for most of the 19 or so emerging markets in Asia, the development of derivative markets is still at an early stage.

 

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Published

04-03-2008

Issue

Vol. 5 No. 1 (2008): International Journal of Banking and Finance (IJBF) Vol. 5, No.1, 2008

Section

Articles

How to Cite

M, S., & H., T. (2008). Asian Derivative Markets: Research Issues. International Journal of Banking and Finance, 5(1), 1-25. https://doi.org/10.32890/ijbf2008.5.1.1

Research impact

Harvested 2026-09-14
2 citations, from OpenAlex — the highest of the sources checked

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Identifiers DOI 10.32890/ijbf2008.5.1.1 OpenAlex W2993621103