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Article: Forex with rice.(the foreign exchange market in Tokyo, Japan, experienced an increase in volatility after trading was allowed during lunch, possibly because of the increased flow of private information)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- May 31, 1997
CopyrightCOPYRIGHT 1997 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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FINANCIAL traders, as everyone knows, are the world's most carnivorous species. So unlike most people, who must take a break from their working day to ingest a little sustenance, the average trader is perfectly capable of devouring his lunch and his clients simultaneously. Hence a decision by the Tokyo foreign-exchange market to allow trading to take place during the lunch hour.
The beginning of lunch-time trading which Tokyo first permitted only in 1994 has given economists something to chew on as well. The reason is that volatility on Tokyo's foreign-exchange market leapt after lunch-time trading was introduced. As economists are keen to understand what makes some ...