A note on execution costs for stock index futures: Information versus liquidity effects

This paper examines execution costs and the impact of trade size for stock index futures using price-volume transaction data from the London International Financial Futures and Options Exchange. Consistent with Subrahmanyam [Rev. Financ. Stud. 4 (1991) 11] we find that effective half spreads in the stock index futures market are small compared to stock markets, and that trades in stock index futures have only a small permanent price impact. This result is important as it helps to better understand the success of equity index products such as index futures and Exchange Traded Funds. We also find that there is no asymmetry in the post-trade price reaction between purchases and sales for stock index futures across various trade sizes. This result is consistent with the conjecture in Chan and Lakonishok [J. Financ. Econ. 33 (1993) 173] that the asymmetry surrounding block trades in stock markets is due to the high cost of short selling and the general reluctance of traders to short sell on stock markets. (C) 2004 Elsevier B.V. All rights reserved.

From the sublime to the subliminal: Fear, awe and wonder in international politics

Key events in international politics, such as terrorist attacks, can be characterised as sublime: our minds clash with phenomena that supersede our cognitive abilities, triggering a range of powerful emotions, such as pain, fear and awe. Encounters with the sublime allow us an important glimpse into the contingent and often manipulative nature of representation. For centuries, philosophers have sought to learn from these experiences, but in political practice the ensuing insights are all too quickly suppressed and forgotten. The prevailing tendency is to react to the elements of fear and awe by reimposing control and order. We emphasise an alternative reaction to the sublime, one that explores new moral and political opportunities in the face of disorientation. But we also stress that we do not need to be dislocated by dramatic events to begin to wonder about the world. Moving from the sublime to the subliminal, we explore how it is possible to acquire the same type of insight into questions of representation and contingency by engaging more everyday practices of politics.