Stock index futures have no impact on stock market volatility, study finds.
The introduction of stock index futures in Shanghai and Shenzhen stock markets did not significantly affect the volatility of the stock market. Researchers analyzed daily closing prices of 300 stock index futures from 2005 to 2011 using the GRACH model. The study found that the stock index futures had no major impact on market volatility, which can help dispel concerns about their effects.