abstract: Given the "New Nine Measures" for capital market reform, a policy document issued by the State Council of China, the development of markets for interest rate derivatives, such as treasury futures, becomes an increasingly important task. Several shortcomings of the existing treasury futures market have been noted: including low market liquidity, singular investor composition, restrict contract terms, and low hedging demand. This study contributes to a better understanding of the treasury futures market by analyzing changes in China treasury futures market regulations and their impact on market liquidity of treasury futures. Found that compared with the mature market, China treasury futures market exists liquidity shortage, the trading system, market structure and the division of regulatory are factors which influence the liquidity of China treasury futures market. This study found that reducing transaction costs for further optimization of the width and depth of China treasury futures market are not obvious by using quantitative analysis method, expanding the smallest change price can optimize the market depth, reducing transaction costs and expanding smallest change price can optimize the immediacy, volume and hosting amount. In addition, the bond market will also influence the treasury futures market, the price fluctuations and the morphology of the yield curve of bond market have significant influence on width, depth and holdings of market. The system of China treasury futures market needs to be optimized by expanding the smallest change price and reducing transaction costs. The market structure needs to be optimized by establishing unified bond market and enriching investor structure. These findings have significant theoretical and practical implications. The study also provides policy recommendations for the design and establishment of treasury futures market to the regulatory agencies. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2016

The concept of behavioural finance has taken more ground concerning the traditional finance paradigm during the last decade. A vital part of the behavioural finance theorem is the subject of behavioural biases and the mistakes these biases have on private stock investors. The authors of this study focused on the bias of overconfidence due to numerous studies indicating the consequences overconfidence has on society and more specifically private investors. The initial focus departed from what might help investors overcome the overconfidence bias. Additionally, the research claiming low financial literacy among young Swedish individuals further caught the authors attention. From this, it was therefore decided to investigate financial literacy's effect on overconfidence among young Swedish individuals to potentially help young individuals understand the risk of overconfidence and what might help reduce the emotional and increase the rational decisions made in investment environments.  With the usage of a questionnaire, we were able to collect quantitative data and thereafter perform three different regressions. The three regression was based on three different measurements of overconfidence; better-than-average effect, miscalibration, and trading frequency. The questions used in the questionnaire were heavily influenced by famous previous literature when it comes to measuring overconfidence and financial literacy. It was also decided to check for different demographic variables and their effect on overconfidence, more precisely previous experience, age, gender, and level of education.  From our study it was found that financial literacy has a negative effect on overconfidence, meaning that the more financially literate an individual is, the less prone to fall victim to overconfidence. More specifically, all three regressions showed this result, indicating a strong relationship. In addition, it was also found that the more experience an individual has the less inclined the individual is to display overconfident behaviour. Lastly, it was found that men tend to be more overconfident than women.  With this study, we are able to contribute to the behavioural view of finance by proving that overconfidence partially exists and that by becoming more financially literate individuals decreases the risk of being overconfident. By being aware of this, we contribute to a healthier investment environment. In addition, this study also contributes to the previous literature on partially overconfidence and financial literacy each on their own but more importantly the effect financial literacy has on overconfidence.