Shock and Spillover Effects of Global Commodity Markets on Some African Equity Markets

2021 ◽  
Author(s):  
Ernest Boakye
Keyword(s):  
Equity Markets ◽  
Spillover Effects ◽  
Commodity Markets ◽  
Global Commodity Markets

High Frequency Trading of Commodities

2018 ◽  
Author(s):  
Raymond P. H. Fishe
Keyword(s):  
High Frequency ◽  
Equity Markets ◽  
Conclusive Evidence ◽  
Commodity Markets ◽  
High Frequency Trading ◽  
Market Quality ◽  
Market Makers ◽  
Speed Advantage ◽  
Open Outcry ◽  
Derivative Markets

Electronic platforms and high frequency traders (HFTs) have changed the nature of trading. Like equity markets, commodity markets have experienced an influx of algorithmic traders and a decline in “pit” or open outcry trading. Regulatory efforts to understand the effects of HFTs and to offer prudent guidelines or new rules are in their infancy. An overall hesitancy exists because academic studies have produced diverse results on liquidity, volatility, and market quality. This survey focuses on high frequency trading research in commodity derivative markets, documenting basic results and extracting inferences when warranted. Evidence indicates that HFTs act as market makers and their speed advantage has lowered transaction costs, generally during normal markets. Although not entirely conclusive, evidence also suggests that HFTs may exacerbate volatility by withdrawing liquidity in times of market stress, such as during “flash” crashes.

scholarly journals Volatility Spillovers Arising from the Financialization of Commodities

2018 ◽  
Vol 11 (4) ◽  
pp. 72 ◽  
Author(s):  
Wing Chan ◽  
Bryce Shelton ◽  
Yan Wu
Keyword(s):  
Commodity Prices ◽  
Spillover Effects ◽  
Realized Volatility ◽  
Commodity Markets ◽  
Exchange Traded Funds ◽  
Volatility Transmission ◽  
Volatility Spillovers ◽  
The Difference ◽  
Index Investment ◽  
The Impact

This paper examines whether the proliferation of new index products, such as commodity-tracking exchange-traded funds (ETFs), amplified the volatility transmission channel introduced by financialization. This paper focuses on the volatility spillover effects among crude oil, metals, agriculture, and non-energy commodity markets. The results show financialization has an impact on the volatility of commodity prices, predominantly for non-energy commodities. However, the impact on volatility is not symmetric across all commodities. The analysis of index investment and investors’ positions in futures markets shows that, when a relationship exists, it is generally negatively correlated with the realized volatility of non-energy commodities. Using realized volatility in the difference-in-difference model provides estimates that are inconsistent with other findings that non-energy commodities, traded as a part of indices, have experienced higher volatility. The results are similar to the index investment and futures market analysis, where increased participation by investors through new investment products has put download pressure on realized volatility.

scholarly journals Asymmetry and Spillover Effects in the North American Equity Markets

2007 ◽  
Vol 1 (2007-12) ◽  
pp. 1
Author(s):  
Giorgio Canarella ◽  
Sunil K. Sapra ◽  
Stephen K. Pollard
Keyword(s):  
North American ◽  
Equity Markets ◽  
Spillover Effects ◽  
The North

scholarly journals Financial Integration in the GCC Region: Market Size Versus National Effects

2019 ◽  
Vol 31 (2) ◽  
pp. 309-316
Author(s):  
Kerim Peren Arin ◽  
Guglielmo Maria Caporale ◽  
Kyriacos Kyriacou ◽  
Nicola Spagnolo
Keyword(s):  
Financial Integration ◽  
Important Determinant ◽  
Equity Markets ◽  
Spillover Effects ◽  
Abu Dhabi ◽  
Stock Exchanges ◽  
Market Size ◽  
Market Capitalization ◽  
The Mean ◽  
Oil Crisis

AbstractThis paper examines financial spillovers between the four largest equity markets (by market capitalization) in the GCC region using a VAR-GARCH (1,1) framework that sheds light on interdependence as well as the effects of the 2014 oil crisis. Since the UAE is a federation including two stock exchanges (Abu Dhabi and Dubai), it is possible to test whether being part of a federal union matters more than market size in terms of financial integration. Our results suggest that the latter is more important, since we could not find evidence of stronger linkages between the Abu Dhabi and Dubai markets compared to those between other markets in the region. By contrast, there are significant spillover effects, both in the mean and in the volatility, from the largest market of Saudi Arabia to Qatar and the two markets in the UAE, which confirms that market capitalization is a more important determinant of financial integration than belonging to a federal union. Further, spillovers from the larger markets have become stronger as a result of the 2014 oil crisis. Finally, there is also evidence of spillovers from the smaller to the larger markets.

scholarly journals U.S. Monetary Policy, Commodity Prices and the Financialization Hypothesis

2017 ◽  
Vol 10 (2) ◽  
pp. 53-77 ◽  
Author(s):  
Papa Gueye Fam ◽  
Rachida Hennani ◽  
Nicolas Huchet
Keyword(s):  
Monetary Policy ◽  
Commodity Prices ◽  
Spillover Effects ◽  
Commodity Markets ◽  
Bond Markets ◽  
Financial Assets ◽  
Market Prices ◽  
Agricultural Prices ◽  
Policy Measures ◽  
The U.S

AbstractMany studies point out the growing correlations within financial markets, while others highlight the financialization of commodity markets. The purpose of this article is to revisit the relationships between various financial assets and commodity markets by taking into account the U.S. monetary policy and therefore the implementation of non-standard measures. In addition to oil, stock and bond markets, U.S. policy rates and a great deal of agricultural prices have been over time considered through a DCC-GARCH model, between 1995-2015. We find that agricultural markets uphold the financialization hypothesis, implying an increase in market-prices’ correlations and so raises the question of agricultural prices’ drivers. Interestingly, conditional correlations between the U.S. monetary policy and agricultural prices have decreased since 2010, which indicates that the implementation of non-standard monetary policy measures reduces spillover effects on asset prices, especially raw commodities. Such a result in turn highlights changing relationships between monetary, financial and physical markets, in a context of very weak policy rates over a long period.

New Immigrants and Neo-rural Values

2011 ◽  
Vol 20 (1) ◽  
pp. 48-68 ◽  
Author(s):  
James P. Verinis
Keyword(s):  
Rural Development ◽  
Commodity Markets ◽  
Environmental Stewardship ◽  
Small Scale ◽  
Development Programs ◽  
Social Fabric ◽  
New Immigrants ◽  
New Residents ◽  
Economic Roles ◽  
Global Commodity Markets

Though Greek agriculture is arguably the picture of rural underdevelopment in Europe, life in rural Greece is transforming within a new global migratory context. Farmers now work with myriad non-Greek minorities who, with the onset of the postsocialist period, have begun to play a diversity of socio-economic roles. These immigrants help to de fine what agricultural (dis)incentives, environmental stewardship, social fabric and territorial occupation mean in the countryside. Together with locals they now co-manage new tensions stemming from European rural development programs and global commodity markets.Scholarship tends to reify the conclusion that immigrants are merely transient, exploited labourers. In conjunction with macroeconomic analyses of rural 'stagnation', such characterizations misrepresent current realities and undermine alternative potentialities. As some new residents join the ranks of small-scale Greek farmers, new rural values are crystallising, opening a door for new interpretations of rural development in Greece.

A Long-Run Perspective on Comparative Advantage

2013 ◽  
Author(s):  
Giovanni Federico ◽  
Nikolaus Wolf
Keyword(s):  
Foreign Trade ◽  
Comparative Advantage ◽  
Commodity Markets ◽  
High Concentration ◽  
Long Run ◽  
Trading Partners ◽  
History Of ◽  
High Level ◽  
Global Commodity Markets

The history of Italy since its unification in 1861 was accompanied by a dramatic increase in the country's integration with European and global commodity markets: foreign trade in the long run grew on average faster than the overall economy. Italy's comparative advantage changed fundamentally, from a high concentration of a few trading partners and a handful of rather simple commodities, into a wide diversification of trading partners and more sophisticated commodities. The chapter uses a new long-term database on Italian foreign trade at a high level of disaggregation to document and analyze these changes. The chapter concludes with an assessment of Italy's prospects from a historical perspective.

3D printing will affect global commodity markets

2016 ◽  
Keyword(s):  
3D Printing ◽  
Smart Materials ◽  
Industrial Revolution ◽  
Commodity Markets ◽  
Digital Design ◽  
Printable Electronics ◽  
Content Type ◽  
Marginal Costs ◽  
Supply And Distribution ◽  
Global Commodity Markets

Subject 3D printing and its ramifications for commodities. Significance General Electric (GE) calls 3D printing "the next industrial revolution". The technique promises to disrupt the manufacturing process, including supply and distribution chains, and to eliminate waste while producing superior and otherwise unmakeable components and reducing marginal costs. 3D printing currently consumes negligible amounts of commodities, but, as adoption expands, it may start affecting commodity supply chains. Impacts Wide adoption of 3D printing will reduce manufacturing waste and idle inventory. 3D printing will enable the development and use of smart materials. Printable electronics could change the usage and functionality of some materials. The potentially limitless customisation of mass-market products will spawn new digital design-to-distribution production platforms.

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