98,230 research outputs found

    Purpose and potential for commodity exchanges in African economies:

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    This paper reviews the purpose and potential of commodity exchanges in Africa. Drawing from the existing literature and using indicative empirics, it examines the conditions that enable successful exchanges, highlights the special challenges to setting up exchanges in Africa, and reviews alternatives to domestic exchanges. We argue that many critical preconditions for the successful establishment of commodity exchanges in Africa remain binding in the short to medium term. The development of commodity exchanges in the region is impeded by the relatively small size of domestic commodity markets, the weak physical and communication infrastructure, a lack of supportive legal and regulatory environments, and the likelihood of policy interventions, particularly in the staple cereals market. Meanwhile, the demand for a domestic commodity exchange for export crops may be limited due to the availability of well-established exchanges abroad and functioning auction floors. The paper highlights three points: (a) efforts to launch exchanges in Africa should realistically assess whether basic conditions for success can be met, (b) if the pre-conditions cannot be met, the use of existing exchanges abroad or the development of regional exchanges may be more feasible than the establishment of national commodity exchanges, and (c) the goals of risk management and reduced transaction costs might be achieved more effectively by improving market fundamentals through investments in transportation, information services, or other financial institutions.commodity exchanges, Risk management, Market development,

    Price, Return and Volatility Linkages of Base Metal Futures traded in India

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    In this study the price, return and volatility behaviour of base metals (aluminium, copper, nickel, lead and zinc) which are traded on Indian commodity exchange - Multi Commodity Exchange (MCX) and International commodity exchange – London Metal Exchange (LME) are analysed. The time period chosen for the study is from November 1st, 2006 to January 30th, 2013. The paper attempts to demonstrate the linkages in price, return and volatility across the two markets for the five metals through three models - (a) Price – Co-integration methodology and Error Correction Mechanism Model (b) Return and Volatility – Modified GARCH model (c) Return and Volatility - ARMA-GARCH in mean model – Innovations Model. The findings of the paper suggest that there exists a strong linkage across the price, return and volatility of futures contracts traded on MCX and LME respectively. Given the level of linkages, the imposition of Commodity Transaction Taxes on sellers at the time of trading of these five base metals on Indian Commodity exchanges would lead to a fall in their trading volume as traders and speculators would escape the higher transaction cost of hedging by investing in International Exchanges instead of Indian Commodity exchanges. This movement from Indian to the International markets would defy the intention of imposition of the tax, as the government expects to earn revenue from the tax, and this would also defeat the very purpose of price discovery in the commodity exchanges in India

    Правове становище товарних бірж

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    Раскрывается правовое регулирование создания и деятельности товарных бирж. На основе анализа Закона «О товарных биржах» и Хозяйственного кодекса Украины делается вывод о том, что эти нормативные акты не дают оснований для выделения товарных бирж, как самостоятельной организационно-правовой формы юридических лиц. Предлагается принять новый Закон «О товарных биржах» и отказаться от регулирования правового статуса товарных бирж в Хозяйственном кодексе.This article contains the analysis of legal regulation of creation and activity of commodity exchanges. On the basis of the critical analysis of the Law «About commodity exchanges»and of the Economic code of Ukraine there is made a conclusion that these statutory acts do not give the bases for allocation of commodity exchanges as the independent organizational-legal form of legal bodies. It is offered to pass the new Law «About commodity exchanges»and to refuse regulation of a legal status of commodity exchanges in the Economic code

    Commodity Exchanges and Antitrust

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    Historically, commodity exchanges have been viewed as natural monopolies, not subject to competitive forces. But in recent years, both technology and regulatory changes have allowed for competition between rival exchanges in various contracts. With competition comes the regulation of competition. The traditional method of regulating competition is through court adjudication of the Sherman Antitrust Act. But in regulated industries, antitrust authority must be shared in some way with the regulatory authority. Then, it must be implemented by the relevant government entity. This article will explore the impact of competition on this industry and how the exchanges are dealing with the resulting antitrust issues. Not surprisingly, there have been several allegations of anticompetitive activity in violation of the antitrust laws of the United States. Indeed, at least two lawsuits have been filed, and one complaint has been brought to the Commodity Futures Trading Commission (“CFTC”). Here we review the economics of commodity exchanges, and the nature of competition between exchanges. We then examine the new forces for competition in exchanges offering commodity contracts. After this introduction to commodity exchanges, we review the basic economic and legal foundations of antitrust law. We then provide an analysis of antitrust mandate of the CFTC and examine the legal doctrine of implied immunity as it applies to the CFTC. Finally, we discuss various types of antitrust cases, and applies these legal and economic theories to recent case

    Commodity ETFs in the Japanese Stock Exchanges

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    The “Financial Big Bang” reforms during the latter half of the 1990s substantially transformed the Japanese financial system, but despite this, the level of risky assets that Japanese households have in their portfolio has not increased. One reason for this is the lack of knowledge necessary to invest in risky assets, such as stocks. Therefore, the Japanese government and financial industry have developed collective investment schemes such as investment trusts, which are an effective way to hold risky assets for retail investors who lack sophisticated investment knowledge. This paper analyzes commodity investment trusts and commodity ETFs as a method for investing in commodities.Commodity futures; ETF; Japan; Stock markets

    Особливості функціонування товарних бірж України у роки нової економічної політики (1921-1928 рр.)

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    In theses the reasons of creation of commodity exchanges in the years of new economic policy are noted, features of their functioning and reasons of forcing them out of infrastructure of market are defined.У тезах означені причини створення товарних бірж у роки нової економічної політики, визначені особливості їх функціонування та причини витіснення з інфраструктури ринку.In theses the reasons of creation of commodity exchanges in the years of new economic policy are noted, features of their functioning and reasons of forcing them out of infrastructure of market are defined. Keywords: commodity exchanges, members of exchanges, exchange contractors, exchange business

    The Commodity Exchanges in the Czech Republic and in the World as an important part of national economy

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    Import 02/09/2009V předložené bakalářské práci s názvem „Komoditní burzy v České republice a ve světě jako důležitá součást národního hospodářství“ je popsán nejprve historický vývoj komoditních burz ve světě. Následné jsou vyjmenované ty nejvýznamnější světové komoditní burzy a detailněji je popsána CME Group INC. Poté následuje krátký popis historického vývoje obchodu s komoditami na území České republiky. Dále jsou uvedeny jednotlivé komoditní burzy. Detailněji jsou popsány Českomoravská komoditní burza Kladno a Energetická burza Praha. Práce poté pokračuje zhodnocením současné situace na českém komoditním trhu a jeho porovnání s předními světovými burzami co se týče objemů uskutečněných obchodů, tak i vlivu komoditních burz na národní hospodářství.The submitted work called “Commodity Exchange in the Czech Republic and in the World as an Important Part of National Economy“ as the first describes the world history of commodity exchanges. Then the most significant world commodity exchanges are listed and the CME Group INC. in particular, is specified. Then the history of the Czech Republic commodity market is briefly described. After the individual commodity exchanges in the Czech Republic are stated and Českomoravská komoditní burza Kladno (the Českomoravská Commodity Exchange Kladno) and Energetická burza Praha (the Energy Exchange Prague) specified in more detail. The work continues with the appraisal of current situation at the Czech commodity market and its comparison with the first world exchanges from the perspective of executed deals volume and the impact of commodity exchanges on national economy.Prezenční545 - Institut ekonomiky a systémů řízenívelmi dobř

    Особливості функціонування товарних бірж України у роки нової економічної політики (1921-1928 рр.)

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    In theses the reasons of creation of commodity exchanges in the years of new economic policy are noted, features of their functioning and reasons of forcing them out of infrastructure of market are defined.У тезах означені причини створення товарних бірж у роки нової економічної політики, визначені особливості їх функціонування та причини витіснення з інфраструктури ринку.In theses the reasons of creation of commodity exchanges in the years of new economic policy are noted, features of their functioning and reasons of forcing them out of infrastructure of market are defined. Keywords: commodity exchanges, members of exchanges, exchange contractors, exchange business

    The Financial Industry's Challenge of Developing Commodity Derivatives

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    With a constant new stream of financial services coming to the market, each often more exotic and complicated than the last, the financial services industry, which includes commodity derivatives exchanges, brokerage houses and banks providing price risk reduction services (the so-called hedging services), is one of the fastest growing industries. In order to assure survival, these companies show a rapid product innovation. However, for commodity derivatives the risk of failure is considerable. This paper presents a new and integrative approach towards commodity derivatives management, which makes it easier to gain insight into the viability of new commodity derivatives before introduction, to assess and improve the viability of existing commodity derivatives

    What's behind volatile import prices from China?

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    In a sharp departure from earlier trends, the price of U.S. imports from China rose 6 percent in the 2006-08 period. To explore the forces behind this surprising increase, the authors create a new import index that uses highly disaggregated data to track price developments in different product types. The index reveals that the largest price increases were concentrated in industrial supplies - goods that rely heavily on commodity inputs. The authors conclude that the surge in commodity prices through mid-2008 was the primary driver of the rising import prices from China.Price indexes ; Imports - Prices ; Commodity exchanges ; Petroleum industry and trade
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