Real Effects of Centralized Markets: Evidence from Steel Futures

• 成果类型: Article
• 署名作者: Martin, Thorsten
• 署名单位: Bocconi University; Frankfurt School Finance & Management
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaf011
• 发表日期: 2025
• 页码: 2140
• 关键词: INDEX FUTURES; STOCK INDEX; INVESTMENT SENSITIVITY; RISK-MANAGEMENT; Bond market; price; volatility; COSTS; INFORMATION; liquidity

摘要

I study the real effects of centralized derivative markets using the staggered introduction of futures contracts for different steel products in the United States. Employing a difference-in-differences strategy, I find that the arrival of centralized futures markets improves price transparency and risk management in the underlying product market: price dispersion decreases and steel producers increase their hedging activity. Moreover, market share is reallocated toward low-cost producers, while product prices, producers' profits, and valuations decrease. Overall, the results indicate that centralized futures markets foster competition in the product market.