Seat Prices Research Articles

The rise and breakup of the commodity exchange membership: An analysis of CBOT seat prices

We conduct a clinical analysis of the CBOT full membership that provides holders with rights to trade any of the exchange’s contracts using a unique database of seat information from the period 1897–2020. We examine microstructure and asset pricing properties of seats including during periods before and following the CBOT’s transition from trading primarily agriculture futures to financial futures as well as periods before and following its demutualization at which time members experienced a separation in their ownership and trading rights. Our analysis adds an interesting dimension to the risk management literature and provides added insight into the market for exchange seats including their returns, turnover, and sensitivities to asset factor premia and to exchange volume.

The Rise and Breakup of the Commodity Exchange Membership: An Analysis of CBOT Seat Prices

We conduct a clinical analysis of the CBOT full membership that provides holders with rights to trade any of the exchange’s contracts using a unique database of seat information from the period 1897-2020. We examine microstructure and asset pricing properties of seats including during periods before and following the CBOT’s transition from trading primarily agriculture futures to financial futures as well as periods before and following its demutualization at which time members experienced a separation in their ownership and trading rights. Our analysis adds an interesting dimension to the risk management literature and provides added insight into the market for exchange seats including their returns, turnover, and sensitivities to asset factor premia and to exchange volume.

Deflation and Reflation: The Pre-WW I Impact on NYSE Trading Volumes and Seat Prices

<em>The study analyzes a unique time period of sustained deflation from 1867 to 1896, followed by sustained reflation after 1896. We use these periods to test two hypotheses concerning the impact on NYSE trading volumes and seat prices. The first is the “liquidity-trading” hypothesis, which hypothesizes that liquidity trading, a component of total trading volume, is positively correlated with interest rates. The second is the price-volume relationship, which hypothesizes a positive relationship between stock prices returns and changes in trading volume. These hypotheses suggest that NYSE trading volume should fall (rise) with falling (rising) stock prices and interest rates. We find strong support for both hypotheses, and additionally show that the impact of stock market prices on trading volumes is highly asymmetrical. As well, the study argues and finds evidence that the high level of systematic risk found in the pricing of NYSE seats is another reflection of the price-volume relationship. Therefore, the study finds strong evidence of a link between deflation, reflation and market liquidity as reflected in trading volumes and the pricing of NYSE seats.</em>

Deflation and Reflation: The Pre-WW I Impact on NYSE Trading Volumes and Seat Prices

The study analyzes a unique time period of sustained deflation from 1867 to 1896, followed by sustained reflation after 1896. We use these periods to test two hypotheses concerning the impact on NYSE trading volumes and seat prices. The first is the “liquidity-trading” hypothesis, which hypothesizes that liquidity trading, a component of total trading volume, is positively correlated with interest rates. The second is the price-volume relationship, which hypothesizes a positive relationship between stock prices returns and changes in trading volume. These hypotheses suggest that NYSE trading volume should fall (rise) with falling (rising) stock prices and interest rates. We find strong support for both hypotheses, and additionally show that the impact of stock market prices on trading volumes is highly asymmetrical. As well, the study argues and finds evidence that the high level of systematic risk found in the pricing of NYSE seats is another reflection of the price-volume relationship. Therefore, the study finds strong evidence of a link between deflation, reflation and market liquidity as reflected in trading volumes and the pricing of NYSE seats.

Competition among the exchanges before the SEC: was the NYSE a natural hegemon?

Improved information technology and higher volume should drive orders to be concentrated in one market, lowering the costs of transactions. However, the opposite occurred during the bull market of the 1920s when rapid technological change spawned a flood of new issues. This article employs newly recovered data for 1900-33 on the volume and seat prices of regional exchanges to examine how these rivals successfully competed with the NYSE, leading to its relative decline at the zenith of the market. The history of US exchanges reveals that the tendency towards concentration of trading is periodically reversed when new industries, whose technologies are risky and unfamiliar, are more easily accommodated by existing or new rivals to the dominant exchange.

A phased approach to orbital public access

The most significant problem with the creation of any viable space passenger business is the “investment trap”; that is the large size and long duration of the initial investment needed to acquire the infrastructure required by the business (launch vehicles, etc.) mean the commercial operations can never generate sufficient revenues, fast enough, to repay the investment and make a profit. This problem is greatly exacerbated by the need to achieve demonstrated levels of safety suitable for public use. The only strategy to overcome the investment trap is to exploit an existing infrastructure developed for the general space business. To illustrate this, a feasibility study of a Personnel Module for the Skylon reusable launch system is outlined. This Personnel Module has two versions, an Initial Configuration suitable for support of the ISS and a Final Configuration with passenger seat prices and levels of safety suitable for support of post-ISS space stations with public access as their main activity.

Can exchange seat prices predict financial market volatility?

AbstractThere is considerable evidence that trading volume and volatility are positively related and that exchange seat prices are largely a function of trading volume. This article examines whether changes in seat prices at the Chicago Board of Trade (where stock index and interest rate futures account for the vast majority of trading volume) are useful in predicting changes in interest rate and stock market volatility. Exponential GARCH and transfer function models are used to demonstrate the power of changes in CBOT seat prices in predicting changes in interest rate and stock market volatility. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:1206–1221, 2008

The Relation between Economic Fundamentals and CBOT Exchange Seat Prices

The Relation between Economic Fundamentals and CBOT Exchange Seat Prices

Do Child Safety Seat Installation Instructions Need to Be Simplified?

The objective of the study was to measure the required reading level of a sample of child safety seat (CSS) installation instructions, and compare readability levels among different prices of CSSs. A CD-ROM containing CSS installation instructions was obtained from the National Highway Traffic Safety Administration (NHTSA). Their readability levels were determined using the SMOG test. The study demonstrated that the readability of instruction sets ranged from the seventh to twelfth grade levels, with an overall SMOG score of 10.34. No significant associations were found to exist between readability and seat prices. The authors thus conclude that CSS instruction manuals are written at a reading level that exceeds the reading skills of most American consumers.

2909 座席予約型生産システムにおける座席価格の設定方法

A booking-type production system (BTPS) with Advanced Planning and Scheduling (APS) technologies is designed to make synchronization of market demand and manufacturing capability. However, from a view point of profit of a company, it is not enough in the competitive market environment. In terms of profit, the system should consider how to decide the price of products, i.e., production seat prices. This paper proposes a pricing method of production seat, in consideration of demand information and the production situation. Controlling prices of production seats, the method tries to make the most resource utilization, and the total profit maximum as well.

The Relation between Stock Market Movements and NYSE Seat Prices

Exchange seat prices are widely reported and followed as measures of market sentiment. This paper analyzes the information content of NYSE seat prices using: (1) annual seat prices from 1869 to 1998, and (2) the complete record of trades, bids and offers for the seat market from 1973 to 1994. Seat market volumes have predictive power regarding future stock market returns, consistent with a model where seat market activity is a proxy for unobserved factors affecting expected returns. We find abnormally large price movements in seats prior to October 1987, consistent with the hypothesis that seat prices capture market sentiment.

The supply and demand for cinema tickets: Some U.K. Evidence

The U.K. cinema industry faces the problem of a perpetually shrinking market with annual admissions having ~ fallen from a peak of 1,635 million in 1946 (see Browning and Sorrell (1954)) to an unprecented low of 60.32 million in 1982 (figure from Monthly Digest of Statistics). The financial press and economists (see e.g. Holmes (1981)) have concentrated upon the associated "plight of the British Film Industry whilst devoting relatively little attention to the analysis of cinemas as business organizations. Traditionally, the British government has operated some form of subsidy towards the film industry generally for non-economic reasons such as patriotism. Thus protectionism has been in operation, with respect to films, in periods when it was not generally acceptable. In 1947 a 75% duty was placed on U.S. film imports but this had to be abandoned after an eight month embargo by U.S. film-makers. In place of this a levy on cinema seat prices was introduced in 1950 which effectively meant that American films were subsidizing British ones as the proceeds of the levy went to British film-makers. In recent times the proceeds of the levy have been partly due to meager attendance. The effect of this decline in subsidy has been cushioned by the use of tax-loss investment, by the private sector, on the start-up costs of film making. The effect of a declining cinema industry on the film industry is further dampened by sales revenue from television and video. There may therefore be two reasons why the decline of the cinema industry is viewed as unimportant. Firstly, the contraction of the industry might simply reflect a change in tastes towards other entertainments. Secondly, if the cinema industry is viewed simply as a distributive outlet for films then its contraction reflects a switch in the mode of distribution. Nonetheless, there is the question on how cinema outlets should conduct themselves

The Political Economy of Futures Market Regulation

Public regulation of futures markets has a long history. The cotton and the grain futures exchanges were already under some form of federal regulation by 1922. Jumping ahead in time, the formation of the Commodity Futures Trading Commission (CFTC) in 1974 was a response to the anticipated growth in the size of market and in the number of traded instruments and need for a coordinated policy for the regulation of futures markets. While futures markets have been regulated in one sort of a way or another for many years, little is known about the sources of support for regulation and precious little is known about the underlying reasons for the regulations. This paper offers both a brief historical account of the regional sources of support for futures legislation and a more contemporary account of the effects on membership seat prices of the recent jurisdictional conflict between the CFTC and the Securities and Exchange Commission (SEC). Public apprehension of futures markets and exchanges has a long history. Even though this

Why are covent garden seat prices so high?

The Royal Opera House could resort less and less to guest artists of intermational standing; it could lean more heavily than it already does on old favourites; it could skimp on new productions; and it could increase the number of ballet performances at the expense of opera. All these measures would tend to hold down seat prices. But without a substantial increase in its Arts Council grant, the Royal Opera House could not significantly cut seat prices unless it drastically changed its basic artistic policy. It is not my purpose to advocate. The choice is yours. Indeed, the choice is everyone's, including people who never go to ballet or opera, because everyone is paying for ballet and opera seats.

Public Regulation of National Securities Exchanges: A Test of the Capture Hypothesis

This paper tests the hypothesis that members of national securities exchanges have received net benefits from the regulatory activities of the Securities and Exchange Commission. The prices of stock exchange seats are analyzed in time periods of major changes in the regulation of the securities industry during the 1926-1972 period. Time series regression models are used to identify changes in seat prices which are unrelated to changes in stock prices or share trading volume. Empirical analysis of the unexpected changes in seat prices indicates that the most important regulatory change occurred in March, 1934, when the Securities and Exchange Act was first considered by Congress; both New York and American Stock Exchange seat prices fell unexpectedly by about 50 percent in one month. There is no evidence that this capital loss was ever recouped after March, 1934. There is also evidence that recent changes in the fixed commission rate structure of the brokerage industry have had a negative impact on seat prices. Thus, there is evidence which contradicts the hypothesis that securities brokers have benefited by capturing control of the regulators of the securities industry.

Stock exchange seats as capital assets

Abstract Stock exchange seats are important assets for securities brokers since they provide access to centralized secondary trading markets for corporate securities at a reduced cost. This paper provides empirical evidence on the dynamic behavior of monthly New York and American Stock Exchange seat prices over the 1926–1972 period. Specifically, evidence is presented which: (a) is consistent with a multiplicative random walk model for seat prices; (b) indicates that unexpected changes in the prices of exchange-listed stocks or in the volume of shares traded on the exchange are important new information about the value of seats in each month; and (c) indicates that the market for seats is efficient in assimilating new information and quickly incorporates new information into the prices of seats. In addition, we examine the effect of the infrequent trading of seats on the statistical properties of the models.