Recent increases in volatility have led to increased uncertainty for investors, and have resulted in wide variations in liquidity. These changes have threatened investors with increased transaction costs, and have emphasized the importance of effective risk management. In this environment, FMRA seeks to fulfill the evolving needs of futures market participants, and to take on board lessons from recent financial events and crises.
In particular, Futures Markets Research Associates has the following objectives:
- First, to develop new financial products to enhance investors’ market information, to reduce uncertainty facing investors, to reduce transaction costs, and to facilitate risk management.
- Second, to undertake original research for the purposes of development and estimation of models of spot and futures markets, and forecasting of key market variables, especially prices and volatility.
- Third, to contribute to futures markets education through development and delivery of courses on futures markets, organization and participation in seminars, workshops, symposia and conferences, and publication of research papers and books on these markets.