2017 Derivative Markets Conference

The Auckland Centre for Financial Research at the Faculty of Business and Law, Auckland University of Technology will be hosting a two-day conference that focuses on derivative markets. We invite academics and professionals to submit papers that model/explain features of derivative markets and products.

VENUE

WA224, 55 Wellesley St E, Auckland, New Zealand


SPECIAL ISSUE

The Journal of Futures Markets has dedicated a special issue to selected papers presented at the conference.


KEYNOTE SPEAKER:

Prof. Robert I. Webb, University of Virginia, US


BEST PAPER AWARDS:

Best Paper Award NZD 1,500


PAPER SUBMISSION:

Deadline for paper submission: 14 May 2017
Authors will be informed of the outcome of their submission by June 10 2017.


REGISTRATION:

The deadline for registration is 1 July 2017 (NZD350 Registration Fee).


MEETING ORGANIZERS:

Adrian Fernandez-Perez
Research Fellow, ACFR

Bart Frijns
Professor of Finance, AUT University
Director of the ACFR

Alireza Tourani-Rad
Professor of Finance, AUT University

Robert I. Webb
Professor of Finance, University of Virginia, US

Full Programme


Programme Overview - Day 1 - 10 August 2017 - WA224


Lunch and Registration:  12pm - 13pm


Welcome: New Zealand Capital Markets: Challenges and Opportunities


Session 1:  1pm - 2:45pm

Ayesha Scott, Auckland University of Technology
Short and sweet, or just short?  The readability of KiwiSaver product disclosure statements

Philip Baillie, NZX
NZX Market Surveillance

Susanna Lee, Harbour Asset Management
The Future.  What will happen, what could happen and what to invest in?


Coffee/Tea Break:  2:45pm to 3:15pm


Session 2:   3:15pm - 4:15pm

Charles Hyde, New Zealand Superannuation Fund
Private Equity

Bart Frijns, Auckland University of Technology
Patterns in daily NZ equity returns


Panel Discussion and Concluding Remarks:  4:15pm - 5pm

Chair:  Alireza Tourani-Rad, Auckland University of Technology


Hors d'oeuvres:  5pm to 6pm - Day 1 Concludes


Programme Overview - Day 2 - 11 August 2017 - WA224


Session 1:  9am to 10:30pm


Stream 1 Chair:  Michael Garcia, University of Wollongong

Presenter:  Daniel (Phong Minh) Nguyen, La Trobe University
Paper:  Estimation of Hedge Ratio: A Wild Bootstrap Approach
Discussant:  Bruce Benet, Central Michigan University and Fred Arditti Center for Risk Management

Presenter:  Bruce Benet, Central Michigan University and Fred Arditti Center for Risk Management
Paper:  Error-Correction-Model (ECM) Based Hedge Ratio Adjustment & Out-of-Sample Futures Hedging Effectiveness
Discussant:  Michael Garcia, University of Wollongong

Presenter:  Michael Garcia, University of Wollongong
Paper:  Should Macro-Economic Information Be Released During Trading Breaks in Futures Markets?
Discussant:  Daniel (Phong Minh) Nguyen, La Trobe University


Stream 2 Chair:  Robert Webb, University of Virginia

Presenter:  Sheng-Hung Chen, National Kaohsiung University of Applied Sciences
Paper:  Oil News Sentiment and Volatility in Energy Market
Discussant:  Man Lu, Central University of Finance and Economics

Presenter:  Man Lu, Central University of Finance and Economics
Paper:  From News to Fact: the Impact of NVIX on Stock VIX
Discussant:  Bart Frijns, Auckland University of Technology

Presenter:  Bart Frijns, Auckland University of Technology
Paper:  Surprise and Dispersion: Informational Impact of USDA Announcements
Discussant:  Sheng-Hung Chen, National Kaohsiung University of Applied Sciences


Coffee/Tea Break:  10:30am to 11am


Session 2:  11am to 12:30pm


Stream 1 Chair:  Lars Norden, Stockholm Business School

Presenter:  Ro (Victor) Cho, Massey University
Paper:  Round Number Effects in WTI Crude Oil Futures Market
Discussant:  Anirban Banerjee, Indian Institute of Management Calcutta

Presenter:  Anirban Banerjee, Indian Institute of Management Calcutta
Paper:  Does Trade Size Restriction Affect Trading Behavior? - Evidence from Indian Single Stock Futures Market
Discussant: Lars Norden , Stockholm Business School

Presenter:  Lars Norden, Stockholm Business School
Paper:  VIX Futures Calendar Spreads
Discussant:  Ro (Victor) Cho, Massey University


Stream 2 Chair: Bart Frijns, Auckland University of Technology

Presenter:  Yiuman Tse, University of Missouri - St Louis
Paper:  Return Predictability and Contrarian Profits of International Index Futures
Discussant:  Jared DeLisle, Utah State University

Presenter:  Jared DeLisle, Utah State University
Paper:  Bank Risk, Financial Stress, and Bank Derivative Use
Discussant:  Adrian Fernandez-Perez, Auckland University of Technology

Presenter:  Adrian Fernandez-Perez, Auckland University of Technology
Paper:  Harvesting Commodity Styles: An Integrated Framework
Discussant:  Yiuman Tse, University of Missouri - St Louis


Lunch Break:  12:30pm to 2pm


Session 3:  2pm to 3:30pm


Stream 1 Chair:  José Da Fonseca, Auckland University of Technology

Presenter:  K. Victor Chow, West Virginia University
Paper:  VIX Decomposition, the Price of Fear and Stock Return Predictability
Discussant:  José Da Fonseca, Auckland University of Technology

Presenter:  Zhuo Huang, Peking University
Paper:  Pricing the CBOE VIX Term Structure and VIX Futures with Realized Volatility
Discussant:  K. Victor Chow, West Virginia University

Presenter:  José Da Fonseca, Auckland University of Technology
Paper:  Semivariance Risk Premiums in Currency Markets
Discussant:  Zhuo Huang, Peking University


Stream 2 Chair:  Alireza Tourani-Rad, Auckland University of Technology

Presenter:  Tai-Yong Roh, Auckland University of Technology
Paper:  A comprehensive look at the return predictability of Variance Risk premium
Discussant:  Milena Tieves, Fern University in Hagen

Presenter:  Milena Tieves, Fern University in Hagen
Paper:  Volatility Discovery and Volatility Quoting on Markets for Options and Warrants
Discussant:  Erwin Hansen, University of Chile

Presenter:  Erwin Hansen, University of Chile
Paper:  Economic Links and the Cross-section of Option Returns
Discussant:  Tai-Yong Roh, Auckland University of Technology


Coffee/Tea Break: 3:30pm to 4pm


Keynote: 4pm to 5pm


Prof. Robert I. Webb, University of Virginia, Charlottesville, USA

Trading Edges and Trade Profitability
With the possible exception of arbitrage, having an advantage or “edge” is central to the expected profitability of most trading strategies.  The rapid rise of high-frequency and other forms of algorithmic trading has changed the feasible set of trading opportunities for many market participants by eliminating both speed and the complex analysis of large data sets (to identify exploitable patterns in prices) as potential trading edges.   This presentation discusses some of the recent academic literature on fast and slow markets and the profitability of high frequency trading and assesses the implications for non-algo traders in the current market environment.


Networking Dinner at Sky Café: 6pm to 9pm

Please meet near the escalators that go down to the Sky Tower Entrance at about 5:50pm
We will go up as a group at 6pm promptly.

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