Price Volatility, Trading Volume and Open Interest: Evidence from Indian Commodity Futures Markets

2009 ◽  
Author(s):  
Brajesh Kumar
Keyword(s):  
Trading Volume ◽  
Futures Markets ◽  
Price Volatility ◽  
Commodity Futures ◽  
Open Interest ◽  
Commodity Futures Markets

scholarly journals Financialization and Structural Change in Commodity Futures Markets

2012 ◽  
Vol 44 (3) ◽  
pp. 371-396 ◽  
Author(s):  
Scott H. Irwin ◽  
Dwight R. Sanders
Keyword(s):  
Structural Change ◽  
Futures Markets ◽  
Structural Changes ◽  
Price Volatility ◽  
Commodity Futures ◽  
Risk Premiums ◽  
Commodity Futures Markets ◽  
Trading Volumes ◽  
Cost Of Hedging ◽  
The Cost

The first decade of the 21st century has perhaps witnessed more structural change in commodity futures markets than all previous decades combined. Not only have trading volumes and open interest increased markedly, but this time period also saw historic changes in both trading and participants. The available literature indicates that the irrational and harmful impacts of the structural changes in commodity futures markets over the last decade have been minimal. In particular, there is little evidence that passive index investment caused a massive bubble in commodity futures prices. There is intriguing evidence of several other rational and beneficial impacts of the structural changes over the last decade. In particular, the expanding market participation may have decreased risk premiums, and hence, the cost of hedging, reduced price volatility, and better integrated commodity markets with financial markets.

Anomalies in Commodity Futures Markets: Risk or Mispricing?

2020 ◽  
Author(s):  
Fabian Hollstein ◽  
Marcel Prokopczuk ◽  
Björn Tharann
Keyword(s):  
Futures Markets ◽  
Commodity Futures ◽  
Commodity Futures Markets

Financialization of Commodity Markets

2018 ◽  
Author(s):  
Kyle J. Putnam
Keyword(s):  
Business Cycle ◽  
Futures Markets ◽  
Commodity Price ◽  
Commodity Markets ◽  
Commodity Futures ◽  
Futures Prices ◽  
Price Behavior ◽  
Risk And Return ◽  
Commodity Futures Markets ◽  
Asset Class

In the early 2000s, financial investors began pouring billions of dollars into the commodity futures markets seeking the unique investment benefits of this distinct asset class. This “financialization” process has called into question the fundamental risk and return properties of commodity futures as evidence has emerged favoring the idea that the massive increase in investor flows caused a rise in futures prices, volatility, and intra- and intermarket return correlations. However, a contrarian line of research contends that the effects of the new “speculative” capital on the futures markets are unsubstantiated and the increased participation of financial investors poses little consequence to the economics of the marketplace. This latter line of literature maintains that the investment benefits of commodity futures have not been diminished and that fundamental factors and business cycle variations can explain the observed changes in commodity price behavior.

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