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