The Study on the Price Discovery Process of Copper between the London Mental Exchange and the Shanghai Futures Exchanges

The competition is increasing between the London Mental Exchanges and the Shanghai Futures Exchanges for listing the similar copper futures contracts. The distribution degrees of the price discovery process are contrasted between the two markets in the paper. The results show that price discovery primarily are originated from the London Mental Exchanges, and with the development of the Shanghai Futures Exchanges' copper futures markets, it plays a more and more important role in the price discovery process.