Additional Aspects of Whether Futures Contracts Succeed
9 Pages Posted: 10 Dec 2018
Date Written: November 16, 2018
The history of futures regulations reveals four features in determining whether a futures contract can succeed: (a) a contract must have a convincing economic rationale; (b) it is helpful if contracts are viewed as being in the national interest; (c) competition requires regulatory parity among exchanges; and (d) markets can survive even draconian interventions so long as they are short-term.
Keywords: Futures contracts, commodities, regulation
JEL Classification: G1, G18, N22
Suggested Citation: Suggested Citation