Derivatives are playing an increasing role within the trading ecosystem of Bitcoin markets. This includes futures that are traded on US regulated exchanges like the Chicago Mercantile Exchange (CME) and unregulated exchanges like Binance. Prior research on which bitcoin markets lead in price...

Commodity derivatives were introduced in India with a dual purpose of promoting price discovery and enhancing risk management in the commodities market. A transaction tax (of 0.01 per cent) on commodity futures trading was introduced in the Union Budget 2013-14. This study examines the rationale...

In light of the recently passed 2010 Dodd-Frank Act, we assess the effect of margin changes on prices, the risk-sharing between speculators and hedgers, and the price stability of 20 commodity futures markets. We find that margin increases decrease the rate at which prices change, yet they...

Motivated by repeated price spikes and crashes over the last decade, we investigate whether the rapidly growing market shares of futures speculators have destabilized commodity spot prices. We approximate conditional volatility and regress it on expected and unexpected speculative open interest....

This paper studies the trading behavior of different types of traders in commodity futures and their impact on liquidity consumption/provision as well as price discovery in the market. CME classifies each trade by its Customer Type Indicator (CTI) into four groups: a local trader who trades for...

Every major crisis in the financial sector points to the varied patterns of market failures and results in eventual reorganization of markets and its regulatory architecture. Last three years have been a watershed in the history of commodity trading in India. A reform drill started by around mid...

We develop a model to study the impacts of speculative position limits in commodity futures market. In the spirit of Dodd-Frank Act, regulators believe that position limit on speculators would dampen futures price volatility and prevent market manipulation. We show that this is not true due to...

Since commodity derivatives typically trade by futures (a.k.a. forwards), there is a need to model the dynamics of the forward curve. This article presents a generic multi-factor model for pricing commodity derivatives. Our theoretical results show that commodity prices are driven by multiple...

Several unique insights are documented based on a study of copper futures contracts traded in the U.S. and China. Based on our unique measures, we present evidence that the U.S. gold and silver futures markets reflect a fully arbitraged market and U.S. copper nearly so. In contrast, the Chinese...