Short-Term Market Efficiency in the Futures Markets: Topix Futures and 10-Year JGB Futures

Document Type

Article

Publication Date

3-1-2006

Abstract

This paper examines the effect of the past price information on the two major futures contracts traded on the Tokyo Stock Exchange: the TOPIX futures and the 10-year JGB futures. The unique 90-min lunch break on the exchange creates two mini-sessions in each calendar-trading day. This paper compares these contracts between the morning and afternoon sessions. In addition, percentage-returns and tick-size-returns are used to measure the intraday price movements following past price performance. These futures contracts present evidence of short-term market inefficiency over the period 1994 to 2003.

DOI

10.1016/j.gfj.2006.01.006

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