Posted in: Sustainable Banking
ECCE webinar Hang Sun: Commodity futures market microstructure: How commodity prices are established
Authors: Paulo Rodrigues, Hang Sun, Jaap Bos.
Presenter: Hang Sun.
Commodity futures markets are market places where different groups of traders with very different incentives gather. We show how the interplay of these traders can explain changes in commodity futures prices. In particular, we focus on two types of traders. First, we study positive feedback traders, who play a big role in price formation. Second, we study commodity index traders, who also play an indispensable role in the determination of commodity prices. Importantly, we show that index traders are likely to trade as negative feedback traders rather than as the ‘speculators’ they are often considered to be.
Title: ECCE Webinar: “Commodity futures market microstructure: How commodity prices are established and why they are sometimes very high”
Date: 26 November 2014
Time: 16:00 - 16:45 PM CEST