Derivative markets in emerging economies: A survey

- Academic literature on derivative markets in emerging economies is reviewed.
- Most popular topics are price discovery process and effects of market structure.
- Empirical studies are concentrated on Taiwanese, Korean, and Chinese data.
- Equity index futures markets attract the highest level of interest.
- Cross-country studies are rare and over-the-counter markets are seldom analyzed.

We review the literature on derivatives in emerging markets. This young but booming literature appears to be concentrated on a few countries, but is quite rich in terms of subject coverage. We classify these topics based on the generally recognized functions of derivative markets and restrict the review to the set of top journals in finance and those that specialize on emerging markets or derivatives.