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The Federation of European Securities Exchanges (FESE) is delighted to announce the winner of the FESE De la Vega Prize 2023: Thorsten Martin, Assistant Professor of Finance, Bocconi University, was awarded this year’s Prize for his paper “Real Effects of Centralized Markets: Evidence From Steel Futures”.
Martin’s paper delves into the profound impact of the introduction of centralised futures markets on the steel industry, focusing on competition in the underlying product markets. Employing a difference-in-differences approach, the author meticulously compares outcomes between steel products with futures contracts and those without. The paper’s key findings shed light on the transformative effects of centralised futures markets: a reduction in price dispersion, an increase in the market share of low-cost producers, and a decline in prices and profits within the underlying product markets. Moreover, Martin’s research provides compelling evidence showcasing a decline in steel producers’ stock prices following the announcement of futures markets. By highlighting the role centralised futures markets play in fostering product market competition, the paper makes a significant contribution to the literature on the real effects of financial markets.
The Prize was formally awarded by Rainer Riess, FESE Director General, on Tuesday 27th June 2023 at the FESE Gala Dinner ahead of the FESE Convention.
For further information, please contact:
Marián Caro
Communications Officer
Federation of European Securities Exchanges
Email: caro@fese.eu
Tel: +32 2 551 01 87