Dodging Dodd-Frank: Excessive Speculation, Commodities Markets, and the Burden of Proof

Law & Policy ◽  
2015 ◽  
Vol 37 (1-2) ◽  
pp. 119-152 ◽  
Author(s):  
James W. Williams
2018 ◽  
Vol 17 (2) ◽  
pp. 123
Author(s):  
Noryati Ahmad ◽  
Ahmad Danial Zainudin ◽  
Fahmi Abdul Rahim ◽  
Catherine S F Ho

Since its establishment, Crude Palm Oil futures contract (FCPO) has been used to directly hedge its physical crude palm oil (CPO). However, due to the excessive speculation activities on crude palm oil futures market, it has been said to be no longer an effective hedging tool to mitigate the price risk of its underlying physical market. This triggers the need for market players to find possible alternatives to ensure that the hedging role can be executed effectively. Thus this investigation attempts to examine whether other inter-related grains and oil seed futures contracts could serve as effective cross-hedging mechanisms for the CPO. Weekly data of inter-related futures contracts from Chicago Board of Trade (CBOT) and Dalian Commodity Exchange (DCE) are employed to cross hedge the physical crude palm oil prices. The study starts from 2006 until 2016. Empirical results indicate that FCPO is still the best futures contract for hedging purposes while Chicago Soybean (CBOTBO) provides second best alternative if cross-hedging is considered. Keywords: Crude palm oil, Crude palm oil futures, Cross Hedging, Optimal Hedge Ratio, Effective Hedging


2017 ◽  
Author(s):  
Jason Chin

The CSI Effect posits that exposure to television programs that portray forensic science (e.g., CSI: Crime Scene Investigation) can change the way jurors evaluate forensic evidence. The most commonly researched hypothesis under the CSI Effect suggests that shows like CSI depict an unrealistically high standard of forensic science and thus unreasonably inflate the expectations of jurors. Jurors are thus more likely to vote to acquit, and prosecutors face higher burden of proof. We review (1) the theory behind the CSI Effect, (2) the perception of the effect among legal actors, (3) the academic treatment of the effect, and (4) how courts have dealt with the effect. We demonstrate that while legal actors do see the CSI Effect as a serious issue, there is virtually no empirical evidence suggesting it is a real phenomenon. Moreover, many of the remedies employed by courts may do no more than introduce bias into juror decision making or even trigger the CSI Effect when it would not normally occur (i.e., the self-fulfilling prophesy). We end with suggestions for the proper treatment of the CSI Effect in courts, and directions for future scholarly work.


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