Case Studies from Commodity Derivatives Debacles

53 Pages Posted: 13 Jun 2015

See all articles by Hilary Till

Hilary Till

Premia Research LLC; Commodity Insights Digest (a publication of Bayes Business School)

Date Written: August 17, 2008

Abstract

Until recently, one could only gain expertise in commodity-derivatives relationships if one had worked in niche commodity-processor companies or in banks that specialized in hedging project risk for natural-resource companies. The contribution of this paper is to help fill the knowledge gap in the risk management of commodity derivatives trading. The paper emphasizes the constant challenges to a trader when attempting to navigate the very dynamic flows of both the commodity markets and the prevailing risk environment. The paper also emphasizes that operational controls are paramount in an age of increasing legal and regulatory risk, particularly for firms involved in large-scale commodity derivatives trading.

Keywords: risk management, commodity derivatives, trading, regulatory, hedge fund

JEL Classification: G1, G11, G18

Suggested Citation

Till, Hilary, Case Studies from Commodity Derivatives Debacles (August 17, 2008). Available at SSRN: https://ssrn.com/abstract=2617705 or http://dx.doi.org/10.2139/ssrn.2617705

Hilary Till (Contact Author)

Premia Research LLC ( email )

Chicago, IL
United States
312-583-1137 (Phone)
312-873-3914 (Fax)

HOME PAGE: http://www.spglobal.com/spdji/en/custom-index-calculations/premia/all/

Commodity Insights Digest (a publication of Bayes Business School) ( email )

London
United Kingdom

HOME PAGE: http://www.bayes-cid.com

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