The Need for Transparency in Commodity and Commodity Derivatives Markets

2008 ◽  
Author(s):  
Piero Cinquegrana
Keyword(s):  
Commodity Derivatives ◽  
Derivatives Markets

3 Trading Venues

2020 ◽  
Author(s):  
Liebi Martin ◽  
Markham Jerry W ◽  
Brown-Hruska Sharon ◽  
De Carvalho Robalo Pedro ◽  
Meakin Hannah ◽  
...  
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Technological Development ◽  
Regulated Markets ◽  
Regulation And Supervision ◽  
Increased Risk ◽  
Commodity Derivatives ◽  
Derivatives Markets

This chapter examines trading venues. The communiqué of the G20 finance ministers and central bank governors of 15 April 2011 states that participants in commodity derivatives markets should be subject to appropriate regulation and supervision. Therefore, certain exemptions from Directive 2004/39/EC (MiFID) are to be modified. These amendments particularly affect clearing houses, trade repositories, and trading venues, and reflect the increased risk and technological development since the last financial crisis. In Europe, MiFID II both defines the types of commodity derivatives that are regulated and the types of activity undertaken in relation to them that requires authorization. It also defines the types of trading venues that create the European trading landscape. As of January 2018, there are three types of trading venues in Europe: regulated markets, multilateral trading facilities, and organized trading facilities. While there are some important distinctions between them, it will be noted that many of the same requirements apply to each of them.

Information linkages between Panamax freight derivatives and commodity derivatives markets

2010 ◽  
Vol 12 (1) ◽  
pp. 91-110 ◽  
Author(s):  
Manolis Kavussanos ◽  
Ilias Visvikis ◽  
Dimitris Dimitrakopoulos
Keyword(s):  
Commodity Derivatives ◽  
Derivatives Markets ◽  
Information Linkages

Positioning for Stronger Limits?

2018 ◽  
Author(s):  
Eric Helleiner
Keyword(s):  
Regulatory Reform ◽  
The United States ◽  
Public Attention ◽  
Reform Initiatives ◽  
Complex Interplay ◽  
Single Issue ◽  
Reform Agenda ◽  
Commodity Derivatives ◽  
Derivatives Markets ◽  
Regulatory Trends

Although commodity derivatives are a small segment of the overall global derivatives markets, their regulation attracted more public attention than any other single issue on the post-2008 derivatives reform agenda. The goal of regulatory reform in this sector in the United States, European Union, and G20 went beyond that of bolstering of transparency and resilience to include the more market-constraining objective of strengthening “position limits” that set a ceiling on the number of contracts that traders are allowed to hold. The initiatives to strengthen position limits after 2008 demonstrated the importance of a complex interplay of domestic, inter-state, and transnational political dynamics in shaping regulatory trends. Reform initiatives in this sector also highlighted some unexpectedly long delays and inconsistencies in the implementation of reforms.

6 Benchmark

2020 ◽  
Author(s):  
Liebi Martin ◽  
Markham Jerry W ◽  
Brown-Hruska Sharon ◽  
De Carvalho Robalo Pedro ◽  
Meakin Hannah ◽  
...  
Keyword(s):  
Interest Rate ◽  
Conflicts Of Interest ◽  
Oil Price ◽  
International Level ◽  
Major Interest ◽  
Commodity Derivatives ◽  
Derivatives Markets ◽  
Information Providers ◽  
Factual Data ◽  
Point Of Reference

This chapter addresses benchmarks. A benchmark is essentially a standard or point of reference against which things may be compared. Benchmarks are referenced in many contracts including commodity derivatives. They can be determined in a number of different ways, from calculation of factual data such as information about transactions executed through to exercise of expert judgement. In recent years, there has been a focus on the need to ensure that benchmarks accurately reflect the market they claim to measure, are transparent about how they are determined, and that they are not influenced by potential conflicts of interest. This action started at international level, with the G20 leaders declaring in 2011 to prepare recommendations to improve the functioning and oversight of the oil price reporting agencies (PRAs). PRAs are publishers and information providers who report prices transacted in physical and some derivatives markets, and give an informed assessment of price levels at distinct points in time. The International Organization of Securities Commissions (IOSCO) subsequently published a set of Principles for Financial Benchmarks (IOSCO Principles) in light of investigations and enforcement actions regarding attempted manipulation of major interest rate benchmarks.

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