The Study on the Effect of Stock Index Future to Stock Markets' Volatility——Based on the empirical study of Japan

Whether the introduction of futures has influenced the underlying asset volatility and its characteristics is still debated both in the economics and practitioners. The aim of this paper is to examine the effect of Japan stock index futures to Japan stock 225 index, which is to answer whether the volatility of Japan stock market is greatly changed after the introduction of the three kind stock index futures. The conclusion is that the influence stayed low.