Risk Management Lessons in Leveraged Commodity Futures Trading

2002 ◽  
Author(s):  
Hilary Till
Keyword(s):  
Risk Management ◽  
Commodity Futures ◽  
Futures Trading

scholarly journals Commodity risk management

2016 ◽  
Vol 5 (3) ◽  
pp. 11-18
Author(s):  
Hilary Till
Keyword(s):  
Risk Management ◽  
Asset Management ◽  
Hedge Fund ◽  
Commodity Futures ◽  
Fund Management ◽  
Futures Trading ◽  
Risk Management Methodology ◽  
Management Issues

This article discusses the practical issues involved in applying a disciplined risk management methodology to commodity futures trading. Accordingly, the paper shows how to apply methodologies derived from both conventional asset management and hedge fund management to futures trading. The article also discusses some of the risk management issues that are unique to leveraged futures trading.

CFTC overhauls customer protection requirements

2014 ◽  
Vol 15 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Robert M. Brown
Keyword(s):  
Design Methodology ◽  
Commodity Futures ◽  
Regulatory Regime ◽  
Futures Trading ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Policies And Procedures ◽  
Practical Implications

Purpose – The purpose of the paper is to summarize the Commodity Futures Trading Commission's (CFTC) recent overhaul of its customer protection rules, which regulate how futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) handle customer funds. Design/methodology/approach – The paper summarizes the most significant aspects of the CFTC's October 30, 2013 customer protection rulemaking, explains FCM and DCO obligations under the new regulatory regime, and sets forth a compliance timeline. Findings – The CFTC's recent overhaul of its customer protection rules impose significant new requirements on FCMs and DCOs in their handling of customer funds. Practical implications – All FCMs and DCOs that handle customer funds should review these new rules and begin putting into place policies and procedures to ensure their compliance as each new requirement comes into effect. Originality/value – The CFTC's overhaul of its customer protection regime is new and significant. FCMs and DCOs need to understand their new obligations under the rules. As these new rules are the CFTC's regulatory response to the events that led to the insolvencies of MF Global and Peregrine Financial Group, these developments also should be of interest to futures and swaps market participants generally.

Differentiating Centralization and Overlap in Swap Regulation

2019 ◽  
pp. 127-148
Author(s):  
Alejandro E. Camacho ◽  
Robert L. Glicksman
Keyword(s):  
Securities And Exchange Commission ◽  
Commodity Futures ◽  
Title Vii ◽  
Regulatory Regime ◽  
Securities Markets ◽  
Futures Trading ◽  
Commodity Futures Trading Commission ◽  
Legislative Changes ◽  
Over Time

This chapter explains how legislative changes to, and the broader commentary on, US derivatives regulation illustrate the value of parsing the overlap/distinct and centralization/decentralization dimensions in assessing the tradeoffs of regulatory allocations. The Securities and Exchange Commission and the Commodity Futures Trading Commission have been tasked with decentralized authority over securities and futures, respectively. Over time, their jurisdictions have increasingly overlapped as the futures and securities markets converged. Reorganization proposals and legislation to correct perceived problems with the overlapping, decentralized regulatory regime (such as Title VII of the Dodd-Frank Act) have usually failed to parse the various tradeoffs between overlap and distinct or between centralized and decentralized authority. By limiting their analysis, policymakers and observers of derivatives regulation may have misdiagnosed problems with the existing allocation or missed potential opportunities to craft different regulatory configurations that might have better accommodated policy tradeoffs or been more politically viable.

Marketing of Agricultural Commodities in India

2020 ◽  
pp. 1335-1357
Author(s):  
Rakhi Arora
Keyword(s):  
National Level ◽  
Marketing Mix ◽  
Commodity Futures ◽  
Commodity Market ◽  
Agricultural Commodities ◽  
Futures Trading ◽  
Commodity Exchange ◽  
Spot Prices ◽  
The Government

Commodity market is a fast paced dynamic market with liquidity and Commodity Exchange providing a platform for trading in various agri and non agri commodities at nationalized exchanges for discovering the price of agricultural goods in India since 2003. This also provides an opportunity to farmers, manufacturers or individuals for hedging and arbitrage to minimizes the losses due to fluctuations in the futures as well as spot prices. Though the Government has taken many steps time to time to control the prices of listed commodities by imposing restrictions like imposing daily margin limits and banning futures trading in speculative commodity/commodities if required but it is still being questioned. This chapter emphasizes on the working of the National Level Commodity Exchanges in India in general, the share of major agricultural commodities traded across National Level Commodity Exchanges in India, the marketing mix for agricultural commodities in India and the benefits and challenges of commodity futures derivatives for investors in India.

Marketing of Agricultural Commodities in India

2017 ◽  
pp. 185-212
Author(s):  
Rakhi Arora
Keyword(s):  
National Level ◽  
Marketing Mix ◽  
Commodity Futures ◽  
Commodity Market ◽  
Agricultural Commodities ◽  
Futures Trading ◽  
Commodity Exchange ◽  
Spot Prices ◽  
The Government

Commodity market is a fast paced dynamic market with liquidity and Commodity Exchange providing a platform for trading in various agri and non agri commodities at nationalized exchanges for discovering the price of agricultural goods in India since 2003. This also provides an opportunity to farmers, manufacturers or individuals for hedging and arbitrage to minimizes the losses due to fluctuations in the futures as well as spot prices. Though the Government has taken many steps time to time to control the prices of listed commodities by imposing restrictions like imposing daily margin limits and banning futures trading in speculative commodity/commodities if required but it is still being questioned. This chapter emphasizes on the working of the National Level Commodity Exchanges in India in general, the share of major agricultural commodities traded across National Level Commodity Exchanges in India, the marketing mix for agricultural commodities in India and the benefits and challenges of commodity futures derivatives for investors in India.

Automatic Trading System Design

2010 ◽  
pp. 166-183 ◽  
Author(s):  
Petr Tucnik
Keyword(s):  
Risk Management ◽  
System Design ◽  
Technical Analysis ◽  
Futures Trading ◽  
Trading System ◽  
General Overview ◽  
The Right ◽  
Selection Of

This chapter will focus on the problem of design of automatic trading system for futures trading, specifically its design lifecycle. This is a task that can be divided into several phases. In this chapter we focus on the selection of proper environment (i.e. choose the right market and commodity), choosing appropriate set of tools (fundamental or technical analysis indicators) and creating the automatic trading system itself, which has to follow rules of money (risk) management and trading psychology. The chapter stresses the importance of the system`s acceptability for the user. The last phase covers the topic of testing and optimization. This chapter provides a general overview of each of these phases together with a discussion of typical issues.

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