Corcelli compares shorting Glencore to shorting Citigroup at the beginning of March 2009 with the exception that Citigroup had real problems and Glencore is the world best physical commodity
The plan soon drew attention from the US Federal Reserve, which has been examining banks' physical commodity
operations, and contacted Morgan Stanley with questions about Wentworth.
Besides completing the all-cash transaction with Mercuria, JP Morgan agreed to sell to other buyers' physical commodity
assets that had originally been included in the Mercuria transaction.
However, other traders feel that a "risk off" vibe is in place throughout physical commodity
markets, and a recent pattern of cooler than normal temperatures in the US may not be enough to provide any lasting support for the heating oil market.
The reason is that unlike ETFs, where only a part of the net asset value is invested in the physical commodity
and the rest is invested in debt or cash instruments, one unit of an e-series product is an electronic warehouse receipt of one unit of the commodity.
The report addresses the G20's November 2010 request for further work on regulation and supervision of physical commodity
Given the dual role that crude oil plays both as a physical commodity
and as a > financial asset, we need to improve our understanding of the interlinkages between the physical and financial markets, if we are to address the issues of price volatility and price discovery in the oil markets," Reddy said.
Limited Physical Commodity
Trading Activities for FHCs.
The New York Mercantile Exchange is the world's largest physical commodity
exchange, offering trading in energy and metals futures and options and clearing services for off-exchange energy transactions.
Currently, they are getting around 90 [pounds sterling]-100 [pounds sterling] tonne, 30 [pounds sterling]-40 [pounds sterling] tonnes above the physical commodity
Its web-based software streamlines and automates the current trading methods of physical commodity
We want to cover the entire gamut of the precious metals physical commodity
industry from cradle to grave,' Comdaq's head of metals, Neil Grover, said.