Did Goldman Sachs Oil Stock Change Its Symble

Physical or virtual transactions of buying and selling involving raw or primary commodities

A commodity market is a market place that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil.^[i] Futures contracts are the oldest way of investing in bolt.^{[ citation needed ]} Commodity markets can include physical trading and derivatives trading using spot prices, forward, futures, and options on futures.^{[ description needed ]} Farmers have used a simple class of derivative trading in the commodity market for centuries for price run a risk management.^[2]

A fiscal derivative is a financial instrument whose value is derived from a article termed an underlier.^[iii] Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with central counterparty clearing, which provide clearing and settlement services on a futures substitution, as well every bit off-exchange in the OTC market.^[four]

Derivatives such as futures contracts, Swaps (1970s-), Commutation-traded Commodities (ETC) (2003-), forrard contracts take become the principal trading instruments in article markets. Futures are traded on regulated bolt exchanges. Over-the-counter (OTC) contracts are "privately negotiated bilateral contracts entered into betwixt the contracting parties directly".^{[v] [6]}

Exchange-traded funds (ETFs) began to feature commodities in 2003. Aureate ETFs are based on "electronic gold" that does not entail the ownership of physical bullion, with its added costs of insurance and storage in repositories such equally the London bullion market place. According to the World Gold Council, ETFs allow investors to exist exposed to the gilded market without the risk of price volatility associated with aureate as a concrete commodity.^{[seven] [viii] [notes ane]}

History [edit]

Article-based coin and article markets in a crude early on class are believed to have originated in Sumer betwixt 4500 BC and 4000 BC. Sumerians commencement used clay tokens sealed in a clay vessel, and then clay writing tablets to represent the corporeality—for instance, the number of goats, to be delivered.^{[9] [10]} These promises of time and date of delivery resemble futures contract.

Early civilizations variously used pigs, rare seashells, or other items as commodity money. Since that time traders have sought ways to simplify and standardize merchandise contracts.^{[11] [12]}

Golden and silver markets evolved in classical civilizations. At first, the precious metals were valued for their beauty and intrinsic worth and were associated with royalty.^[11] In time, they were used for trading and were exchanged for other goods and commodities, or for payments of labor.^[thirteen] Gold, measured out, then became money. Golden's scarcity, its unique density and the way it could be hands melted, shaped, and measured made information technology a natural trading asset.^[14]

Offset in the late 10th century, article markets grew as a mechanism for allocating goods, labor, land and capital letter beyond Europe. Between the late 11th and the tardily 13th century, English language urbanization, regional specialization, expanded and improved infrastructure, the increased utilise of coinage and the proliferation of markets and fairs were evidence of commercialization.^[15] The spread of markets is illustrated by the 1466 installation of reliable scales in the villages of Sloten and Osdorp then villagers no longer had to travel to Haarlem or Amsterdam to weigh their locally produced cheese and butter.^[15]

The Amsterdam Stock Exchange, often cited every bit the start stock exchange, originated as a marketplace for the substitution of commodities. Early trading on the Amsterdam Stock Exchange frequently involved the use of very sophisticated contracts, including curt sales, forrad contracts, and options. "Trading took place at the Amsterdam Bourse, an open aired venue, which was created as a commodity exchange in 1530 and rebuilt in 1608. Commodity exchanges themselves were a relatively contempo invention, existing in only a scattering of cities."^[sixteen]

In 1864, in the United States, wheat, corn, cattle, and pigs were widely traded using standard instruments on the Chicago Lath of Trade (CBOT), the world's oldest futures and options exchange. Other food commodities were added to the Commodity Exchange Act and traded through CBOT in the 1930s and 1940s, expanding the list from grains to include rice, manufacturing plant feeds, butter, eggs, Irish gaelic potatoes and soybeans.^[17] Successful article markets require broad consensus on production variations to make each commodity adequate for trading, such as the purity of aureate in bullion.^[18] Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, almost of which had standards of quality and timeliness.^[19]

Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, which paved the way to expanded interstate and international trade."^[20]

Reputation and clearing became central concerns, and states that could handle them most finer adult powerful financial centers.^[21]

Article price index [edit]

In 1934, the U.s. Bureau of Labor Statistics began the ciphering of a daily Commodity price index that became bachelor to the public in 1940. Past 1952, the Agency of Labor Statistics issued a Spot Marketplace Price Alphabetize that measured the price movements of "22 sensitive basic commodities whose markets are presumed to exist amidst the first to exist influenced by changes in economic conditions. Every bit such, it serves as 1 early indication of impending changes in business action."^[22]

Commodity index fund [edit]

A article index fund is a fund whose avails are invested in financial instruments based on or linked to a commodity index. In merely about every case the index is in fact a Article Futures Index. The kickoff such index was the Dow Jones Commodity Index, which began in 1933.^[23] The first practically investable commodity futures index was the Goldman Sachs Commodity Index, created in 1991,^[24] and known as the "GSCI". The next was the Dow Jones AIG Commodity Index. Information technology differed from the GSCI primarily in the weights allocated to each commodity. The DJ AIG had mechanisms to periodically limit the weight of any one article and to remove commodities whose weights became as well small. Subsequently AIG'south fiscal problems in 2008 the Index rights were sold to UBS and it is now known every bit the DJUBS index. Other commodity indices include the Reuters / CRB index (which is the sometime CRB Alphabetize as re-structured in 2005) and the Rogers Alphabetize.

Greenbacks commodity [edit]

Cash commodities or "actuals" refer to the physical goods—e.g., wheat, corn, soybeans, crude oil, gilded, silver—that someone is buying/selling/trading as distinguished from derivatives.^[2]

Telephone call options [edit]

In a telephone call option counterparties enter into a financial contract choice where the buyer purchases the right but not the obligation to buy an agreed quantity of a particular commodity or financial musical instrument (the underlying) from the seller of the choice at a certain fourth dimension (the expiration engagement) for a certain toll (the strike cost). The seller (or "author") is obligated to sell the article or financial instrument should the buyer and so decide. The heir-apparent pays a fee (called a premium) for this right.^[25]

Electronic commodities trading [edit]

In traditional stock market exchanges such every bit the New York Stock Commutation (NYSE), virtually trading activity took place in the trading pits in confront-to-face interactions between brokers and dealers in open up outcry trading.^[26] In 1992 the Financial Information eXchange (Prepare) protocol was introduced, allowing international real-fourth dimension commutation of data regarding market place transactions. The U.Due south. Securities and Exchange Committee ordered U.S. stock markets to convert from the fractional arrangement to a decimal system by April 2001. Metrification, conversion from the royal arrangement of measurement to the metrical, increased throughout the 20th century.^[27] Eventually Fix-compliant interfaces were adopted globally by commodity exchanges using the FIX Protocol.^[28] In 2001 the Chicago Board of Trade and the Chicago Mercantile Commutation (later merged into the CME grouping, the world's largest futures exchange visitor)^[27] launched their Prepare-compliant interface.

By 2011, the alternative trading system (ATS) of electronic trading featured computers buying and selling without human being dealer intermediation. High-frequency trading (HFT) algorithmic trading, had almost phased out "dinosaur floor-traders".^{[26] [notes two]}

Complexity and interconnectedness of global market [edit]

The robust growth of emerging market place economies (EMEs, such equally Brazil, Russia, India, and China), start in the 1990s, "propelled commodity markets into a supercycle". The size and multifariousness of commodity markets expanded internationally,^[29] and pension funds and sovereign wealth funds started allocating more capital to commodities, in guild to diversify into an asset class with less exposure to currency depreciation.^[30]

In 2012, as emerging-market economies slowed down, commodity prices peaked and started to decline. From 2005 through 2013, energy and metals' real prices remained well above their long-term averages. In 2012, real food prices were their highest since 1982.^[29]

The price of golden bullion fell dramatically on 12 April 2013 and analysts aimlessly sought explanations. Rumors spread that the European Central Banking concern (ECB) would force Cyprus to sell its aureate reserves in response to its financial crisis. Major banks such as Goldman Sachs began immediately to brusk gilded bullion. Investors scrambled to liquidate their commutation-traded funds (ETFs)^{[notes 3]} and margin call selling accelerated. George Gero, precious metals commodities skillful at the Royal Bank of Canada (RBC) Wealth Management section reported that he had not seen selling of gold bullion as panicked as this in his forty years in commodity markets.^[31]

The earliest article substitution-traded fund (ETFs), such as SPDR Golden Shares NYSE Arca: GLD and iShares Silver Trust NYSE Arca: SLV, actually owned the physical commodities. Similar to these are NYSE Arca: Drape (palladium) and NYSE Arca: PPLT (platinum). However, virtually Exchange Traded Commodities (ETCs) implement a futures trading strategy. At the time Russian Prime Minister Dmitry Medvedev warned that Russia could sink into recession. He argued that "We live in a dynamic, fast-developing world. Information technology is so global and and then circuitous that nosotros sometimes cannot keep up with the changes". Analysts have claimed that Russia's economy is overly dependent on commodities.^[32]

Contracts in the commodity market [edit]

A Spot contract is an agreement where delivery and payment either takes place immediately, or with a short lag. Physical trading unremarkably involves a visual inspection and is carried out in concrete markets such as a farmers market. Derivatives markets, on the other paw, require the being of agreed standards so that trades tin can be made without visual inspection.

Standardization [edit]

The states soybean futures do not qualify every bit "standard class" if they are "GMO or a mixture of GMO and Not-GMO No. 2 yellowish soybeans of Indiana, Ohio and Michigan origin produced in the United statesA. (Non-screened, stored in silo)". They are of "deliverable grade" if they are "GMO or a mixture of GMO and Non-GMO No. ii yellow soybeans of Iowa, Illinois and Wisconsin origin produced in the U.s.A. (Not-screened, stored in silo)". Note the stardom betwixt states, and the need to clearly mention their status equally GMO (genetically modified organism) which makes them unacceptable to nigh organic nutrient buyers.

Like specifications employ for cotton wool, orange juice, cocoa, sugar, wheat, corn, barley, pork bellies, milk, feed stuffs, fruits, vegetables, other grains, other beans, hay, other livestock, meats, poultry, eggs, or any other article which is so traded.

Standardization has besides occurred technologically, as the use of the FIX Protocol past commodities exchanges has allowed merchandise messages to be sent, received and processed in the same format every bit stocks or equities. This process began in 2001 when the Chicago Mercantile Exchange launched a FIX-compliant interface that was adopted by commodity exchanges around the globe.^[28]

Derivatives [edit]

Derivatives evolved from simple commodity future contracts into a diverse group of fiscal instruments that apply to every kind of asset, including mortgages, insurance and many more. Futures contracts, Swaps (1970s-), Exchange-traded Commodities (ETC) (2003-), frontward contracts, etc. are examples. They tin can be traded through formal exchanges or through Over-the-counter (OTC). Article market derivatives unlike credit default derivatives, for case, are secured by the concrete assets or commodities.^[iii]

Forrard contracts [edit]

A forward contract is an agreement between two parties to exchange at a stock-still time to come date a given quantity of a commodity for a specific price defined when the contract is finalized. The stock-still price is too chosen forward price. Such forward contracts began every bit a way of reducing pricing take a chance in food and agronomical product markets. By like-minded in advance on a price for a futurity commitment, farmers were able protect their output against a possible autumn of market prices and in contrast buyers were able to protect themselves confronting a possible rise of market prices.

Forward contracts, for example, were used for rice in seventeenth century Nippon.

Futures contract [edit]

Futures contracts are standardized frontwards contracts that are transacted through an exchange. In futures contracts the buyer and the seller stipulate product, course, quantity and location and leaving price as the only variable.^[33]

Agricultural futures contracts are the oldest, in utilize in the United States for more than than 170 years.^[34] Modernistic futures agreements, began in Chicago in the 1840s, with the advent of grain elevators.^[35] Chicago, centrally located, emerged as the hub betwixt Midwestern farmers and east coast consumer population centers.

Swaps [edit]

A bandy is a derivative in which counterparties exchange the cash flows of one political party'southward financial musical instrument for those of the other party's financial instrument. They were introduced in the 1970s.^{[36] [37]}

Exchange-traded bolt (ETCs) [edit]

Exchange-traded commodity is a term used for commodity exchange-traded funds (which are funds) or commodity exchange-traded notes (which are notes). These rails the operation of an underlying commodity index including full return indices based on a single commodity. They are similar to ETFs and traded and settled exactly like stock funds. ETCs accept marketplace maker back up with guaranteed liquidity, enabling investors to easily invest in commodities.

They were introduced in 2003.

At starting time, simply professional institutional investors had admission, merely online exchanges opened some ETC markets to almost anyone. ETCs were introduced partly in response to the tight supply of commodities in 2000, combined with record low inventories and increasing demand from emerging markets such as China and Republic of india.^[38]

Prior to the introduction of ETCs, by the 1990s ETFs pioneered by Barclays Global Investors (BGI) revolutionized the mutual funds industry.^[38] By the stop of Dec 2009 BGI assets hit an best high of $ane trillion.^[39]

Gold was the first article to be securitised through an Commutation Traded Fund (ETF) in the early 1990s, merely it was not available for merchandise until 2003.^[38] The idea of a Golden ETF was first officially conceptualised by Benchmark Nugget Management Company Private Ltd in India, when they filed a proposal with the Securities and Exchange Board of Republic of india in May 2002.^[40] The first gold exchange-traded fund was Gold Bullion Securities launched on the ASX in 2003, and the first silverish exchange-traded fund was iShares Silverish Trust launched on the NYSE in 2006. As of November 2010 a article ETF, namely SPDR Gold Shares, was the second-largest ETF by market place capitalization.^[41]

More often than not, commodity ETFs are index funds tracking not-security indices. Because they do non invest in securities, article ETFs are not regulated as investment companies under the Investment Company Act of 1940 in the United states, although their public offering is bailiwick to SEC review and they need an SEC no-action letter under the Securities Substitution Human activity of 1934. They may, still, exist subject to regulation by the Commodity Futures Trading Committee.^{[42] [43]}

The earliest commodity ETFs, such as SPDR Gold Shares NYSE Arca: GLD and iShares Silverish Trust NYSE Arca: SLV, actually owned the physical commodity (due east.yard., gold and silver bars). Similar to these are NYSE Arca: Curtain (palladium) and NYSE Arca: PPLT (platinum). However, most ETCs implement a futures trading strategy, which may produce quite different results from owning the commodity.

Commodity ETFs merchandise provide exposure to an increasing range of commodities and commodity indices, including energy, metals, softs and agronomics. Many article funds, such as oil ringlet so-chosen front-calendar month futures contracts from calendar month to month. This provides exposure to the commodity, simply subjects the investor to risks involved in different prices along the term structure, such as a high cost to roll.^{[seven] [8]}

ETCs in China and India gained in importance due to those countries' emergence every bit commodities consumers and producers. China accounted for more than 60% of exchange-traded commodities in 2009, upward from twoscore% the previous year. The global volume of ETCs increased by a 20% in 2010, and 50% since 2008, to around two.5 billion one thousand thousand contracts.{{^[44]}}

Over-the-counter (OTC) commodities derivatives [edit]

Over-the-counter (OTC) commodities derivatives trading originally involved ii parties, without an exchange. Exchange trading offers greater transparency and regulatory protections. In an OTC trade, the price is not generally made public. OTC commodities derivatives are higher risk but may also atomic number 82 to higher profits.^[45]

Between 2007 and 2010, global physical exports of commodities fell by 2%, while the outstanding value of OTC commodities derivatives declined past ii-thirds as investors reduced take chances post-obit a five-fold increment in the previous three years.

Coin nether direction more than doubled between 2008 and 2010 to nearly $380 billion. Inflows into the sector totaled over $threescore billion in 2010, the second-highest year on record, downwards from $72 billion the previous year. The bulk of funds went into precious metals and energy products. The growth in prices of many commodities in 2010 contributed to the increase in the value of commodities funds under direction.^[46]

Commodities exchange [edit]

A bolt exchange is an exchange where various bolt and derivatives are traded. Well-nigh article markets across the world trade in agricultural products and other raw materials (similar wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or freight contracts.^[2]

Largest commodities exchanges

Exchange	Land	Volume per month $K
CME Group	United states of america	$268,000,000[47]
Tokyo Commodity Exchange	Nippon	-
Euronext	France, Belgium, Netherlands, Portugal, UK	-
Dalian Commodity Exchange	China	-
Multi Commodity Substitution	India	-
Intercontinental Exchange	United states, Canada, Mainland china, UK	-
Africa Mercantile Exchange	Kenya, Africa	-
Uzbek Article Exchange	Tashkent, Uzbekistan	-

• Abuja Securities and Commodities Exchange
• Africa Mercantile Exchange
• Bhatinda Om & Oil Exchange Bathinda
• Brazilian Mercantile and Futures Exchange
• Chicago Board of Trade
• Chicago Mercantile Exchange
• Commodity Exchange Bratislava, JSC
• Dalian Commodity Commutation
• Dubai Mercantile Substitution
• Dubai Golden & Commodities Exchange
• Euronext.liffe
• Ethiopia Commodity Exchange
• Hong Kong Mercantile Exchange
• Indian Commodity Exchange
• Intercontinental Commutation
• Iranian Oil Bourse
• Kansas City Board of Trade
• London Metal Exchange
• Minneapolis Grain Exchange
• Multi Commodity Exchange
• National Commodity and Derivatives Exchange
• National Multi-Commodity Exchange of India Ltd
• National Food Exchange
• National Spot Exchange
• New York Mercantile Exchange
• New York Board of Merchandise
• Rosario Board of Trade
• Sioux City Grain Exchange
• Tokyo Commodity Exchange
• Winnipeg Commodity Substitution

Traded commodity classes [edit]

Height traded bolt

Rank	Commodity	Value in Us$ ('000)	Date of information
1	Mineral fuels, oils, distillation products, etc.	$2,183,079,941	2012
2	Electrical, electronic equipment	$one,833,534,414	2012
3	Machinery, nuclear reactors, boilers, etc.	$1,763,371,813	2012
4	Vehicles other than railway, tramway	$1,076,830,856	2012
five	Plastics and articles thereof	$470,226,676	2012
6	Optical, photograph, technical, medical, etc. appliance	$465,101,524	2012
seven	Pharmaceutical products	$443,596,577	2012
8	Fe and steel	$379,113,147	2012
9	Organic chemicals	$377,462,088	2012
10	Pearls, precious stones, metals, coins, etc.	$348,155,369	2012

Source: International Merchandise Eye^[48]

Energy [edit]

Energy commodities include crude oil peculiarly Due west Texas Intermediate (WTI) rough oil and Brent crude oil, natural gas, heating oil, ethanol and purified terephthalic acrid. Hedging is a common practice for these commodities.

Crude oil and natural gas [edit]

For many years, Due west Texas Intermediate (WTI) rough oil, a light, sweet crude oil, was the world'south about-traded commodity. WTI is a grade used as a benchmark in oil pricing. Information technology is the underlying commodity of Chicago Mercantile Exchange'due south oil futures contracts. WTI is oftentimes referenced in news reports on oil prices, alongside Brent Crude. WTI is lighter and sweeter than Brent and considerably lighter and sweeter than Dubai or Sultanate of oman.^[49]

From April through October 2012, Brent futures contracts exceeded those for WTI, the longest streak since at least 1995.^[50]

Crude oil tin be calorie-free or heavy. Oil was the first course of energy to be widely traded. Some commodity market place speculation is directly related to the stability of certain states, east.g., Iraq, Bahrain, Iran, Venezuela and many others. Most commodities markets are non and so tied to the politics of volatile regions.

Oil and gasoline are traded in units of 1,000 barrels (42,000 Usa gallons). WTI crude oil is traded through NYMEX nether trading symbol CL and through Intercontinental Commutation (ICE) under trading symbol WBS. Brent rough oil is traded in through Intercontinental Exchange nether trading symbol BRN and on the CME under trading symbol BZ. Gulf Coast Gasoline is traded through NYMEX with the trading symbol of LR. Gasoline (reformulated gasoline blendstock for oxygen blending or RBOB) is traded through NYMEX via trading symbol RB. Propane is traded through NYMEX, a subsidiary of Intercontinental Exchange since early on 2013, via trading symbol PN.

Natural gas is traded through NYMEX in units of 10,000 million BTU with the trading symbol of NG. Heating oil is traded through NYMEX under trading symbol HO.

Others [edit]

Purified terephthalic acid (PTA) is traded through ZCE in units of 5 tons with the trading symbol of TA. Ethanol is traded at CBOT in units of 29,000 U.South. gal nether trading symbols AC (Open up Auction) and ZE (Electronic).

Metals [edit]

Precious metals [edit]

Precious metals currently traded on the commodity market include gold, platinum, palladium and silver which are sold by the troy ounce. One of the principal exchanges for these precious metals is COMEX.

According to the World Gold Council, investments in gold are the primary driver of industry growth. Golden prices are highly volatile, driven by big flows of speculative money.^[51]

Industrial metals [edit]

Industrial metals are sold by the metric ton through the London Metallic Exchange and New York Mercantile Exchange. The London Metal Exchange trades include copper, aluminium, lead, tin, aluminium blend, nickel, cobalt and molybdenum. In 2007, steel began trading on the London Metal Exchange.

Iron ore has been the latest improver to industrial metal derivatives. Deutsche Bank first began offering fe ore swaps in 2008, other banks rapidly followed. Since then the size of the market place has more than doubled each year between 2008 and 2012.^[52]

Agriculture [edit]

Agricultural commodities include grains, food and fiber as well as livestock and meat, various regulatory bodies define agricultural products.^[53]

In 1900, corn acreage was double that of wheat in the United States. Just from the 1930s through the 1970s soybean acreage surpassed corn. Early in the 1970s grain and soybean prices, which had been relatively stable, "soared to levels that were unimaginable at the time". At that place were a number of factors affecting prices including the "surge in crude oil prices caused by the Arab Oil Embargo in October 1973 (US aggrandizement reached 11% in 1975)".^[54]

On 21 July 2010, United States Congress passed the Dodd–Frank Wall Street Reform and Consumer Protection Act with changes to the definition of agricultural commodity. The operational definition used by Dodd-Frank includes "[a]ll other bolt that are, or once were, or are derived from, living organisms, including plant, animal and aquatic life, which are generally fungible, within their respective classes, and are used primarily for man food, shelter, creature feed, or natural cobweb". Three other categories were explained and listed.^[55]

In February 2013, Cornell Law School included lumber, soybeans, oilseeds, livestock (live cattle and hogs), dairy products. Agronomical bolt can include lumber (timber and forests), grains excluding stored grain (wheat, oats, barley, rye, grain sorghum, cotton fiber, flax, fodder, tame hay, native grass), vegetables (potatoes, tomatoes, sweet corn, dry beans, dry peas, freezing and canning peas), fruit (citrus such as oranges, apples, grapes) corn, tobacco, rice, peanuts, carbohydrate beets, carbohydrate cane, sunflowers, raisins, nursery crops, nuts, soybean complex, aquacultural fish subcontract species such as finfish, mollusk, crustacean, aquatic invertebrate, amphibian, reptile, or found life cultivated in aquatic establish farms.^{[56] [57]}

Diamonds [edit]

As of 2012, diamond was not traded as a article. Institutional investors were repelled past campaign against "blood diamonds", the monopoly structure of the diamond market place and the lack of uniform standards for diamond pricing. In 2012 the SEC reviewed a proposal to create the "first diamond-backed exchange-traded fund" that would trade on-line in units of one-carat diamonds with a storage vault and commitment point in Antwerp, home of the Antwerp Diamond Bourse. The exchange fund was backed by a company based in New York Urban center called IndexIQ. IndexIQ had already introduced 14 commutation-traded funds since 2008.^{[51] [58] [notes four]}

Co-ordinate to Citigroup analysts, the annual production of polished diamonds is well-nigh $18 billion. Like golden, diamonds are hands authenticated and durable. Diamond prices have been more than stable than the metals, as the global diamond monopoly De Beers once held virtually 90% (past 2013 reduced to 40%) of the new diamond market place.^[51]

Other commodity markets [edit]

Prophylactic trades on the Singapore Commodity Exchange in units of i kg priced in US cents. Palm oil is traded on the Malaysian Ringgit (RM), Bursa Malaysia in units of i kg priced in US cents. Wool is traded on the AUD in units of i kg. Polypropylene and Linear Low Density Polyethylene (LL) did trade on the London Metal Exchange in units of one,000 kg priced in USD but was dropped in 2011.

Regulatory bodies and policies [edit]

U.s. [edit]

In the U.s.a., the chief regulator of article and futures markets is the Commodity Futures Trading Commission (CFTC). The National Futures Clan (NFA) was formed in 1976 and is the futures industry'due south self-regulatory system. The NFA's beginning regulatory operations began in 1982 and fall under the Commodity Commutation Act of the Commodity Futures Trading Commission Deed.^[59]

Dodd–Frank was enacted in response to the 2008 financial crisis. Information technology called for "strong measures to limit speculation in agronomical bolt" calling upon the CFTC to farther limit positions and to regulate over-the-counter trades.^[sixty]

European Wedlock [edit]

Markets in Fiscal Instruments Directive (MiFID) is the cornerstone of the European Committee's Financial Services Action Plan that regulate operations of the EU fiscal service markets. It was reviewed in 2012 by the European Parliament (EP) and the Economic and Fiscal Affairs Council (ECOFIN).^[61] The European Parliament adopted a revised version of Mifid II on 26 October 2012 which include "provisions for position limits on commodity derivatives", aimed at "preventing marketplace abuse" and supporting "orderly pricing and settlement conditions".^[62]

The European Securities and Markets Potency (Esma), based in Paris and formed in 2011, is an "European union-wide financial markets watchdog". Esma sets position limits on article derivatives as described in Mifid II.^[62]

The EP voted in favor of stronger regulation of article derivative markets in September 2012 to "cease abusive speculation in article markets" that were "driving global food prices increases and price volatility". In July 2012, "food prices globally soared by x percent" (World Bank 2012). Senior British MEP Arlene McCarthy called for "putting a brake on excessive food speculation and speculating giants profiting from hunger" ending immoral practices that "only serve the interests of profiteers".^[63] In March 2012, EP Member Markus Ferber suggested amendments to the European Committee'south proposals, intended to strengthen restrictions on loftier-frequency trading and commodity price manipulation.^[64]

See also [edit]

• List of commodity booms
• Microexchanges

Notes [edit]

1. ^ This article covers physical product (nutrient, metals, energy) markets but not the ways that services, including those of governments, nor investment, nor debt, can exist seen as a commodity. Articles on reinsurance markets, stock markets, bond markets, and currency markets encompass those concerns separately and in more depth.
2. ^ In July 2009, when a high-frequency trading platform with proprietary algorithmic trading lawmaking used by Goldman Sachs to allegedly generate massive profits in the article market place was stolen by Sergey Aleynikov at that place was widespread business concern about the unintended economic consequences of HFT.
3. ^ Exchange Traded Funds revolutionized the mutual funds industry when they were introduced. Substitution Traded Bolt, sold showtime by pioneering investors group Barclays Global Investors (BGI) (now owned by BlackRock) revolutionized the commodity market. By the stop of December 2009 Barclays Global Investors (BGI) assets hit an all-time high of $i trillion ($1,032 billion).
4. ^ IndexIQ registered Adam South. Patti as Primary Executive Officeholder (CEO) and David Fogel as Chief Financial Officeholder and Executive Vice President in the City of Rye Brook, New York, on 31 Jan 2013 as representatives of IndexIQ Advisors LLC sponsoring the IQ Physical Diamond Trust.

References [edit]

1. ^ "Soft Commodity Definition". Investopedia. 15 February 2009. Retrieved 6 December 2012.
2. ^ ^{a b c} "Opportunities and Gamble: an Educational Guide to Trading Futures and Options on Futures" (PDF). Chicago, Illinois: National Futures Association. 2006. p. 6.
3. ^ ^{a b} O'Harrow, Robert (21 April 2010). "A primer on financial derivatives". Washington Post.
4. ^ "Agreement Derivatives: Markets and Infrastructure - Federal Reserve Bank of Chicago". Chicagofed.org . Retrieved 23 Baronial 2018.
5. ^ "The Regulation of Derivatives in Canada". Expert Panel. 2007.
6. ^ Loder, Asjylyn (18 July 2010). "Commodity Manipulation May Be Easier to Evidence Afterwards Overhaul". Bloomberg.
7. ^ ^{a b} Bytom Lauricella (2 Nov 2009). "Gold Mutual Funds Vs. Gilt ETFs: Information technology Depends on the Goal". Wall Street Journal . Retrieved 3 October 2011.
8. ^ ^{a b} "The Futurity of Commodity ETFs". Morningstar. 25 Baronial 2009. Retrieved 3 October 2011.
9. ^ Banerjee, Jasodhara (16 January 2013). "Origins of Growing Money". Republic of india: Forbes India Magazine.
10. ^ Sinha, Ram Pratap; Bhuniya, Ashis (seven January 2011). "Risk Transfer Through Article Derivatives: A Study of Soyabean Oil". SSRN 1736406.
11. ^ ^{a b} James, Tom (2016). Article Marketplace Trading and Investment: A Practitioners Guide to the Markets (Global Fiscal Markets). p. 7. ISBN978-1137432803 . Retrieved 9 March 2020.
12. ^ Diamond, Jared (2017). Guns, Germs and Steel - The Fates of Man Societies. New York and London: Westward. W. Norton & Company. ISBN978-0393354324.
13. ^ "The Historical Value of Argent: A 2000-Yr Overview".
14. ^ "History of gilt". Archived from the original on five November 2013. Retrieved five November 2013.
15. ^ ^{a b} Dijkman, Jessica Elisabeth Catharina (18 June 2010). "Medieval market institutions: The arrangement of commodity markets in The netherlands, c. 1200 – c. 1450" (PDF). pp. 1–2. Archived from the original (PDF) on nineteen May 2016. Retrieved xx April 2013.
16. ^ Stringham, Edward (2003). "The Extralegal Development of Securities Trading in Seventeenth Century Amsterdam". Quarterly Review of Economics and Finance. 43 (2): 321. doi:ten.1016/S1062-9769(02)00153-9. S2CID 153987773. SSRN 1676251.
17. ^ "History of the CFTC: U.S. Futures Trading and Regulation Before the Creation of the CFTC". U.Southward. Commodity Futures Trading Commission.
18. ^ "Variations of commodities in trading". GOptions Trading. Archived from the original on 13 April 2016. Retrieved 29 March 2016.
19. ^ James, Tom (2016). Article Market place Trading and Investment: A Practitioners Guide to the Markets (Global Financial Markets). p. 8. ISBN978-1137432803 . Retrieved nine March 2020.
20. ^ US Commodity Futures Trading Handbook Volume ane Strategic Information and Regulations. 29 May 2016. ISBN978-1577516095.
21. ^ Markham, Jerry West. (1987). The History of Commodity Futures Trading and Its Regulation . Praeger. p. 305. ISBN9780275923136.
22. ^ "CRB® BLS Spot Indices". Encyclopedia of Commodity and Financial Prices: Grains and Oilseeds. Commodity Research Bureau (CRB). 2006. Archived from the original on xix January 2013. Retrieved 25 April 2013.
23. ^ Bhardwaj, Geetesh; Janardanan, Rajkumar; Rouwenhorst, Chiliad. Geert (nineteen September 2019). "The Commencement Article Futures Alphabetize of 1933". SSRN 3451443.
24. ^ "The Food Chimera", Frederick Kaufman, Harper's, 2010 July
25. ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action . Upper Saddle River, NJ: Pearson Prentice Hall. p. 288. ISBN0-13-063085-3.
26. ^ ^{a b} McGowan, Michael (2011). "The rise of computerized loftier frequency trading: use and controversy". Duke Law & Technology Review.
27. ^ ^{a b} Johnson, David. "Stock Market Goes Decimal: Complicated fractions abandoned in favor of pennies".
28. ^ ^{a b} Malabre, Fred; Mendelson, Don (15 December 2011). "Commodities Trading with FIX". CME Group.
29. ^ ^{a b} Lane (Deputy Governor of the Bank of Canada), Timothy (25 September 2012). "Financing Commodities Markets presented to the CFA Society of Calgary". Calgary, Alberta.
30. ^ Firzli, M. Nicolas; Bazi, Vincent (2011). "Infrastructure Investments in an Age of Austerity: The Alimony and Sovereign Funds Perspective". Revue Analyse Financière, book 41. Archived from the original on 17 September 2011.
31. ^ Fontevecchia, Agustino (15 April 2013). "Vehement And Panicky Gilded Selling Plummet Bullion And Article Markets". Forbes.
32. ^ Gorst, Isabel (17 April 2013). "Russia and less than $100 oil". Financial Times Weblog . Retrieved 17 April 2013.
33. ^ Garner, Carley. A Trader'southward First Book on Bolt. (New Bailiwick of jersey: FT Press, 2010): pg 19.
34. ^ Futures Trading Act of 1921, Alleged unconstitutional in Loma v. Wallace 259 U.S. 44 (1922), the Grain Futures Act of 1922 and Board of Trade of City of Chicago 5. Olsen 262 U.S. 1 (1923).
35. ^ Cronon, William. Pricing the Future: Grain. Nature's Metropolis: Chicago and the Great W. University of Chicago, 1991. pp.109-133
36. ^ William D. Coleman (2003). Governing Global Finance: Fiscal derivatives, liberal states, and transformative capacity (PDF). GHC Working Paper 01/two. Archived from the original (PDF) on 9 Feb 2014. Retrieved 15 April 2013.
37. ^ Dennis W. Carlton (1984). "Futures Markets: Their Purpose, Their History, Their Growth, Their Successes and Failures". Journal of Futures Markets. 4 (3): 237–71. doi:ten.1002/fut.3990040302. ProQuest 228205962.
38. ^ ^{a b c} Bienkowski, Nik. "Exchange Traded Commodities Led by Gold, ETCs Opened the World of Commodities to Investors" (PDF). Alchemist. The London Bullion Market Clan (48).
39. ^ Opalesque. "Blackness Stone's global ETF's hit an all time high of $1tln".
40. ^ "Benchmark Asset Management Company conceptualises Gold ETF". Etfglobalinvestor.internet. Archived from the original on 9 October 2011. Retrieved 3 October 2011.
41. ^ "Largest ETFs: Top 25 ETFs By Market Cap". ETFdb. Retrieved 3 November 2010.
42. ^ Michael Sackheim, Michael Schmidtberger & James Munsell, DB Article Alphabetize Tracking Fund: An Innovative Substitution-Traded Fund, Futures Industry (May/June 2006).
43. ^ Koyfman, Yevgeniy (21 August 2009). "No Gas: Barclays Halts Issuance of Natural Gas ETN". Alphabetize universe.com. Retrieved iii Oct 2011.
44. ^ Khanna, Tarun (Dec 2007). "Red china + India: The Power of Two". Harvard Business Review.
45. ^ Jon Gregory. Counterparty credit risk. ISBN 978-0-470-68576-i. p. 7.
46. ^ Bolt Trading report (archive)
47. ^ "Web Volume Written report CMEG" (PDF). Archived from the original (PDF) on 22 November 2009. Retrieved 2 July 2009.
48. ^ "Trade statistics for international business evolution". Trade Map. 20 September 2013. Retrieved 26 September 2013.
49. ^ Marius Vassiliou (2009). Historical Lexicon of the Petroleum Manufacture. Lanham, Doc: Scarecrow Press. ISBN 0-8108-5993-ix.
50. ^ Smith, Grant (26 November 2012). "Brent Poised to Depose WTI as About-Traded Oil Futures". Bloomberg.
51. ^ ^{a b c} Popper, Nathanial (xiii April 2012). "Diamonds as a Article". The New York Times.
52. ^ "The Importance of Fe Ore Derivatives - The International Resource Periodical". www.internationalresourcejournal.com. Archived from the original on 15 September 2016. Retrieved half dozen September 2016.
53. ^ Run across the Futures Trading Deed of 1921, Declared unconstitutional in Hill five. Wallace 259 U.S. 44 (1922), the Grain Futures Deed of 1922 and Board of Trade of City of Chicago 5. Olsen 262 U.s. 1 (1923).
54. ^ "Encyclopedia of Commodity and Financial Prices: Grains and Oilseeds" (PDF). Commodity Research Bureau (CRB). pp. 172–187. Archived from the original (PDF) on 17 June 2012. Retrieved 25 April 2013.
55. ^ "Final Rule Regarding the Definition of Agricultural Article" (PDF). Commodity Futures Trading Commission Office of Public Affairs. 21 July 2010.
56. ^ "Definition of Agricultural Bolt". Police force at Cornell. Cornell University. February 2013.
57. ^ Brown, Veronica (15 April 2013). "Aureate set for worst ii-solar day loss since 1983". Reuters.
58. ^ "IQ Physical Diamond Trust". 5 February 2013.
59. ^ "National Futures Association". National Futures Association.
60. ^ Clapp, Jennifer (5 December 2012). "Position Limits for Agronomical Commodity Derivatives: Getting Tougher or Tough to Become?". Triple Crunch.
61. ^ Henn, Markus (October 2012). "European Parliament decides to tackle commodity speculation: a petty bit". Middle for Enquiry on Multinational Corporations (SOMO) (14). Archived from the original on 14 June 2013. Retrieved 19 Apr 2013.
62. ^ ^{a b} Maroo, Jay (xiii Nov 2012). "Commodity position limits crusade Mifid 2 confusion". Free energy Risk.
63. ^ Banks, Martin (27 September 2012). "European union parliament approves moves to terminate 'abusive' speculation in commodity markets". European Parliament.
64. ^ Reeve, Nick (29 March 2012). "Mifid amendment calls for committee ban to be scrapped". Financial Times. Archived from the original on 21 May 2012.

Further reading [edit]

• Agreement Derivatives: Markets and Infrastructure Federal Reserve Bank of Chicago, Financial Markets Group
• "Opportunities and Risk: an Educational Guide to Trading Futures and Options on Futures" (PDF). Chicago, Illinois: National Futures Association. 2006. p. 48.
• Markham, Jerry Westward. (1987). The History of Commodity Futures Trading and Its Regulation . Praeger. p. 305. ISBN9780275923136.
• Longstreth, Andrew (26 May 2011). Alden Bentley (ed.). "CFTC faces loftier hurdles in oil manipulation example". Reuters.

External links [edit]

• Media related to Article markets at Wikimedia Commons
• Open Historical Commodity Price Data

Did Goldman Sachs Oil Stock Change Its Symble,

Source: https://en.wikipedia.org/wiki/Commodity_market

Posted by: bohntheirried.blogspot.com

Share this post