Abstract
Overview
Introduction
The rapid growth in investment in commodities due to low returns in equity and
debt markets is presenting its own challenges and opportunities. New players
are being drawn by the returns on offer as the commodity ' super cycle' shows
no sign of abating. This report will look at how new market entrants has
changed the market dynamics and the technology responses of types of market
participants.
Scope
- Covers commodities globally, focusing on exchanges based in Europe and Nth
America
- APAC focus with Australian electricity market case studies
Report Highlights
The rapid growth in commodities trading volumes and prices will continue with
fundamental demand in China and India for oil and raw materials providing a
counterbalance against the downturn in the US. New entrants are flooding into
the market in large numbers, in many cases without physical exposure to the
underlying commodities.
They are contributing to volatility by exacerbating any movements in price,
which coupled with the rise in algorithmic trading is causing risk management
strategies to be re-evaluated in light of the breakdown of historical trends.
Carbon trading continues to develop, with the EU Emissions Trading Scheme
(ETS) publishing its roadmap for phase III. It will be keenly watched as it is
envisaged the EU ETS will provide the foundation for a global carbon trading
scheme. With the advent of a US based cap and trade scheme the US domestic
market alone could reach $1Trillion by 2020
Reasons to Purchase
- Gain visibility of changes in commodities markets
- Gain market insight to assist in your strategic planning and go-to-market
strategy
- Technology Options in Commodities Trading (Strategic Focus)