The Anti-Speculation Cycle, Managing Commodity Risk, and Position Limits

10 Pages Posted: 22 May 2015

See all articles by Hilary Till

Hilary Till

Premia Research LLC; EDHEC-Risk Institute; J.P. Morgan Center for Commodities, University of Colorado Denver Business School; Global Commodities Applied Research Digest

Date Written: March 2013

Abstract

Market participants have an obligation to periodically explain the economic role of futures trading and the role of speculators in these markets. This will be the main task of this paper. In addition, this paper will discuss two other challenges in the commodity markets: the impact of the Risk On/Risk Off (RORO) environment in managing commodity risk, and the prospects for the imposition of commodity position limits.

Keywords: Commodity markets, hedgers, speculators, futures markets, risk, position limits

JEL Classification: G1, G11, G18

Suggested Citation

Till, Hilary, The Anti-Speculation Cycle, Managing Commodity Risk, and Position Limits (March 2013). Available at SSRN: https://ssrn.com/abstract=2608554 or http://dx.doi.org/10.2139/ssrn.2608554

Hilary Till (Contact Author)

Premia Research LLC ( email )

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

HOME PAGE: http://customindices.spindices.com/custom-index-calculations/premia/all

EDHEC-Risk Institute

Nice
France

HOME PAGE: http://risk.edhec.edu/

J.P. Morgan Center for Commodities, University of Colorado Denver Business School ( email )

1475 Lawrence St.
Denver, CO 80202
United States

HOME PAGE: http://www.business.ucdenver.edu/commodities

Global Commodities Applied Research Digest ( email )

J.P. Morgan Center for Commodities
1475 Lawrence Street
Denver, CO 80202
United States

HOME PAGE: http://www.jpmcc-gcard.com/hilary-till

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