Business Review


The impact of single stock futures on the spot market volatility is still a issue debated in finance literature. The aim of this study is to analyze the effect of introduction of single stock futures on the volatility of Karachi Stock Exchange. This study mainly addresses the changes in level of volatility and structure after the introduction of single stock futures. Twenty four companies listed on KSE were evaluated in terms of possible volatility effect due to stock futures trading. This study applied F-test for differences in variances as a traditional measure for volatility and GARCH(1,1) as a econometric technique for detecting time-varying volatility. The results showed that there was no effect on volatility level and changes were experienced with structure of volatility after stock futures trading.


Single stock futures, Derivatives, volatility.



Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published Online

March 02, 2021

Included in

Business Commons



Publication Stage



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.