Exotic ideas about Commodity Market and Risk

simon jacques

Newbie
5 1
I'd like to open a thread about the Commodity Market linkage with Traders bankruptcy. Usually when a major trader become insolvent, it is never good for commodity derivatives markets. I have put some glimpse about this Fungibility aspect in a recent article for Zero Hedge.

Quote:

When a major trader is on the brink of, and the market is pricing an event, the commodity market and market risk become extremely fungible. [2]

This fungibility aspect becomes crucial, particularly during times when banks and large institutions rush to transfer their risks to the capital markets instead of warehousing them.


[2] – Zero Hedge 08/18/2015:

Simon Jacques
 
Last edited:

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