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The development of electronic trading in the futures industry: strategic risk positioning in a globalising age

Scott, Susan V. and Barrett, Michael I. (2002) The development of electronic trading in the futures industry: strategic risk positioning in a globalising age. Working paper series, 113. Department of Information Systems, London School of Economics and Political Science, London, UK.

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Abstract

Contemporary political, economic and social conditions heighten the demand placed upon organizations to create strategy designed to manage uncertainty. It is suggested that a broader analytical repertoire may support development of insight into the nature and speed of change during turbulent phases of IT-enabled modernization. We present empirical data from a two-year research project studying strategic responses to the competitive emergence of electronic trading at the major international financial futures exchanges (1998-200). The term ‘strategic risk positioning’ is used as a central organizing concept to draw together an analysis of the subjective time-risk relationships influencing strategy formation during this period. We being by examining how different interpretations of urgency and uncertainty can help us understand the co-existence of multiple strategies during times of change. We suggest that both researchers and practitioners need to give increased attention to the way that information media fuels the adjustment of meaning given to significant events in contemporary society. A heightened sense of an uncertain future shapes the strategic imagination and triggers processes of risk positioning. In conclusion, the potential side effects of strategic risk positioning activities like hedging, betting and reinvention for the next phase of development in the financial futures industry are discussed.

Item Type: Monograph (Working Paper)
Official URL: http://www.lse.ac.uk/collections/informationSystem...
Additional Information: © 2002 The Authors
Library of Congress subject classification: H Social Sciences > HG Finance
Q Science > QA Mathematics > QA76 Computer software
T Technology > T Technology (General)
Journal of Economic Literature Classification System: G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships; Contracts and Reputation; Networks
Sets: Research centres and groups > Information Systems and Innovation Group
Departments > Management
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Research centres and groups > Centre for Analysis of Risk and Regulation (CARR)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 113
Date Deposited: 07 Apr 2011 12:18
URL: http://eprints.lse.ac.uk/33904/

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