| Author | Huang, Guo-shiung |
| Call Number | AIT RSPR no. SM-00-64 |
| Subject(s) | Futures market--Taiwan
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| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-00-64 |
| Abstract | This research study examines the current development of futures market in Taiwan, and its interactions with spot market. Futures market is the syrmnetry of the spot market. It plays two important roles. One is price discovery, and another is risk transference. Commodities of Taiwan Futures Exchange are playing such two important roles. One is to discover the real price of spot share, another is to offer a hedging channel for stock market participants. This research attempts to explore the possible problems of indigenous futures market. Two inajor unfavorable issues are identified. High transaction costs results in the insufficiency of market liquidity. On the other hand, institutional investors have low involvement in the futures trading, especially foreign investors. These issues will be detrimental to the enhancement of the prospects of Taiwan Futures Market. Based on the issues identified, Taiwan futures market may adopt some measures to promote its robustness and enhance its market liquidity. They are made up of enhancement of tax incentive, introduction of market maker system, diversity of derivative commodities, pursuit of strategic alliance, and appropriate relaxation of regulation. Formation of a complete and robust financial market does not just depend on control and regulation of spot markets. If derivatives markets could be established step by step, they will be a great complementto the spot markets |
| Year | 2000 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-00-64 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S; |
| Examination Committee(s) | Swierczek, Fredric W;Truong Quang; |
| Scholarship Donor(s) | Taiwan Provincial Government; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2000 |