Pitfalls in Single Stock Futures

2013 ◽  
pp. 1-8
Author(s):  
Jayanth R. Varma
Keyword(s):  
Futures Markets ◽  
Market Manipulation ◽  
Valuation Model ◽  
Cost Of Carry ◽  
Single Stock Futures

The case describes two episodes where the basic valuation model (cost of carry model) for single stock futures appears to break down. The first involves market manipulation and the second involves an unexpected change in the record date for an already announced dividend. This breakdown leads to large losses for the participant in these futures markets.

scholarly journals Convergence of Stock Futures Markets – An Analytical Study of Indian Stock Markets

2019 ◽  
Vol 8 (2S4) ◽  
pp. 337-342
Keyword(s):  
Stock Markets ◽  
Futures Markets ◽  
Analytical Study ◽  
Price Convergence ◽  
Futures Prices ◽  
Settlement System ◽  
Futures Trading ◽  
Developed Markets ◽  
Single Stock Futures

Trading on stock futures was introduced in India on 9 th November 2001. Initially the contracts are settled in cash and in 2010 July 15 the SEBI allowed the exchanges to choose the physical settlement system for futures trading in stocks, with an aim to put the Indian futures and settlement system at par with other developed markets. So the stocks can be settled either through the cash or physical delivery. The study aims to investigate the price convergence between the spot and the futures prices and its effect on cash settled and the physical delivery in single stock futures. The study finds that there is an efficient convergence of both the market under the Physical delivery and its persistence throughout the contract period while compared with the cash settled single stock futures.

The P/B-ROE Valuation Model Revisited

CFA Digest ◽  
2006 ◽  
Vol 36 (1) ◽  
pp. 49-51
Author(s):  
Chenchuramaiah T. Bathala
Keyword(s):  
Valuation Model

How Trustworthy is Your Valuation Model?

1985 ◽  
Vol 41 (6) ◽  
pp. 42-48 ◽  
Author(s):  
Daniel Rie
Keyword(s):  
Valuation Model

Opportunities for improving the insider laws: A comparative analysis of the practice in the USA and Russia

2020 ◽  
Vol 26 (4) ◽  
pp. 796-814
Author(s):  
E.K. Ovakimyan
Keyword(s):  
Financial Markets ◽  
Insider Trading ◽  
Negative Impact ◽  
Business Environment ◽  
Market Manipulation ◽  
Insider Information ◽  
Analysis And Synthesis ◽  
The Usa ◽  
Legislative Perfection ◽  
Definition Of

Subject. The article examines the laws regulating insider trading. Objectives. The study outlines recommendations for refining Law On Countering the Illegal Use of Insider Information and Market Manipulation and Amendments to Some Legislative Acts of the Russian Federation, № 224-ФЗ of July 27, 2010. Methods. The methodological framework includes a general dialectical method, analysis and synthesis, induction and deductions, and some specific methods, such as comparative and formal logic analysis to specify the definition of insider information, structural logic and functional analysis to improve the mechanism for countering insider trading and market manipulation. Results. We discovered key drawbacks to be addressed so as to improve the business environment in Russia. Although the Russia laws mainly mirror the U.S. laws, they present a more extended list of terms concerning the insider information. I believe the legislative perfection should be continued. Conclusions and Relevance. The study helps apply the findings to outline a new legislative regulation or amend the existing ones, add a new mention on the course of financial markets to students’ books, develop new methods for detecting and countering and improving the existing ones. If all parties to insider relationships use the findings, they will prevent insider trading crimes in financial markets and (or) reduce the negative impact of such crimes on the parties.

Sign in / Sign up

Export Citation Format

Share Document