‘Commodities’ Algorithmic Trading Articles & Financial Insight
- Commodities: from pit to screen
SUBSCRIBERS ONLYCommodities trading is undergoing radical change, driven in part by increasingly electronic markets and regulation. Peter Barker reports on how markets and traders are evolving.
- Algo no-go?
SUBSCRIBERS ONLYAre there algos that can deliver the goods in those corners of the market where the rarest and most illiquid commodities are traded? Shayla Walmsley discusses the execution challenges in a trading environment where, if there were still pits, they would be full of armchairs.
- Commodities – the Ultimate Hedge
FREE ARTICLEGiven the roller coaster ride of financial markets and the growing volatility of exchange rates, investors have been searching for an ultimate store of value. In recent years many have looked to commodities, and there has even been a proposal to create a global currency, known as the Terra, tied to a basket of physical commodities1. This search for long-term value has led to its own dynamics. Studies have shown for example that commodity futures are negatively correlated with equity and bond returns, while having a similar risk premium to equities. At the same time they are positively correlated with inflation and even sudden, unexpected price shifts2. So how then have the commodity markets fared in the crisis? Bob Giffords investigates.