Understanding lead/lag and price-discovery in Australian Equity Index and Options Market

Financial markets are defined by the trading and settlement technologies which they employ, regulations, market participants, traded instruments information mechanisms and the information trading protocols which surround these technologies and mechanisms.

These institutional details are important, as the trading systems and regulations affect the liquidity, transaction costs and efficiency of the market. In perfectly frictionless and rational markets, the prices of securities and security derivatives must simultaneously reflect the incorporation of information into prices, otherwise costless arbitrage profits would be possible ... READ MORE

Klaus Buhr, PhD, MBA, Guest Contributor NZLawyer - 5 April 2012