Cover Image

Market Liberalization and Trading in Korea

This paper reports on the trading behavior of major participants, investment trust companies, banks, and foreigners in South Korea in the period after the currency markets were liberalized and the limits on foreign investments were lifted. It was found that trading in the spot currency market was im...

Full description

Saved in:
Bibliographic Details
Main Authors: Blenman, Lloyd P., Chen, Dar-Hsin, Chen, Chun-Da
Format: Article
Language:English
Published: Universiti Utara Malaysia 2010
Subjects:
HG Finance
Online Access:http://repo.uum.edu.my/25053/1/IJBF%207%202%202010%2037%2058.pdf
http://repo.uum.edu.my/25053/
http://ijbf.uum.edu.my/index.php/previous-issues/140-the-international-journal-of-banking-and-finance-ijbf-vol-7-no-2-august-2010
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.repo.25053
record_format eprints
spelling my.uum.repo.250532018-10-31T01:14:13Z http://repo.uum.edu.my/25053/ Market Liberalization and Trading in Korea Blenman, Lloyd P. Chen, Dar-Hsin Chen, Chun-Da HG Finance This paper reports on the trading behavior of major participants, investment trust companies, banks, and foreigners in South Korea in the period after the currency markets were liberalized and the limits on foreign investments were lifted. It was found that trading in the spot currency market was impacted by volatility in the daily Won/USD rates. As the daily unexpected range expanded (narrowed), daily spot trading volume and volatility increased (decreased). This is evidence of asymmetric trading behavior on the part of market participants. It was found that only investment trust companies adjusted their spot positions by trading USD futures as a response to unexpected volatility changes of the exchange rate. There is evidence of volatility clustering of the trading volatilities across Korean markets and trader types and no signs of market instability was found. Universiti Utara Malaysia 2010 Article PeerReviewed application/pdf en http://repo.uum.edu.my/25053/1/IJBF%207%202%202010%2037%2058.pdf Blenman, Lloyd P. and Chen, Dar-Hsin and Chen, Chun-Da (2010) Market Liberalization and Trading in Korea. The International Journal of Banking and Finance, 7 (2). pp. 37-58. ISSN 1617-722 http://ijbf.uum.edu.my/index.php/previous-issues/140-the-international-journal-of-banking-and-finance-ijbf-vol-7-no-2-august-2010
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Blenman, Lloyd P.
Chen, Dar-Hsin
Chen, Chun-Da
Market Liberalization and Trading in Korea
description This paper reports on the trading behavior of major participants, investment trust companies, banks, and foreigners in South Korea in the period after the currency markets were liberalized and the limits on foreign investments were lifted. It was found that trading in the spot currency market was impacted by volatility in the daily Won/USD rates. As the daily unexpected range expanded (narrowed), daily spot trading volume and volatility increased (decreased). This is evidence of asymmetric trading behavior on the part of market participants. It was found that only investment trust companies adjusted their spot positions by trading USD futures as a response to unexpected volatility changes of the exchange rate. There is evidence of volatility clustering of the trading volatilities across Korean markets and trader types and no signs of market instability was found.
format Article
author Blenman, Lloyd P.
Chen, Dar-Hsin
Chen, Chun-Da
author_facet Blenman, Lloyd P.
Chen, Dar-Hsin
Chen, Chun-Da
author_sort Blenman, Lloyd P.
title Market Liberalization and Trading in Korea
title_short Market Liberalization and Trading in Korea
title_full Market Liberalization and Trading in Korea
title_fullStr Market Liberalization and Trading in Korea
title_full_unstemmed Market Liberalization and Trading in Korea
title_sort market liberalization and trading in korea
publisher Universiti Utara Malaysia
publishDate 2010
url http://repo.uum.edu.my/25053/1/IJBF%207%202%202010%2037%2058.pdf
http://repo.uum.edu.my/25053/
http://ijbf.uum.edu.my/index.php/previous-issues/140-the-international-journal-of-banking-and-finance-ijbf-vol-7-no-2-august-2010
_version_ 1644284212910489600
score 13.211869

Similar Items