Effects of Electronic Trading on the Hang Seng Index Futures Market
This investigation of the switch from open-outcry trading to electronic trading on the Hang Seng Index (HSI) futures contract reveals that the bid–ask spread narrows and the futures price plays more of a role in information transmission. Factors, such as anonymity in trading and fast order execution in electronic trading, attract informed traders to the futures market, enhancing the information flow. Our results provide support for the worldwide trend of transforming open-outcry markets into electronic trading platforms
Electronic trading; Hang Seng Index futures
Econometrics | Finance
International Review of Economics and Finance
Fung, Joseph; Lien, Donald; TSE, Yiuman; and TSE, Yiu Kuen.
Effects of Electronic Trading on the Hang Seng Index Futures Market. (2005). International Review of Economics and Finance. 14, (4), 415-425. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/453
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.