First, we are a central marketplace where buyers and sellers come together to trade, often in contracts of underlying commodities
, under set rules and regulations.
It said that banks' ability to trade in the underlying commodities
and not just derivatives was significant, as it ensured the smooth functioning of the markets.
The year started on a high note with most sector stocks enjoying further gains following their pre-Christmas rally and shares generally performing better than the underlying commodities
5%, analysts are starting to question whether much higher share prices are justified given the prospects of higher costs and an uncertain outlook for the underlying commodities
The DBLCI Apex Index aims to generate superior results in all economic cycles by investing in a risk-weighted basket of three underlying commodities
indices (DBLCI Mean Reversion Enhanced Index, the DB Commodity Harvest Index and the DBLCI Momentum Index.
With so many of the key underlying commodities
experiencing price inflation, manufacturers will be increasingly concerned that they will have to pass those costs down the supply chain to retail customers, and ultimately, consumers.
ETFs are derivative products, which are traded based on price movements in any of the existing indices or underlying commodities
GMR is a valuable risk-mitigating tool, as it secures financing through the intrinsic value of underlying commodities
Hitherto, most of the commodity Murabaha deals have been done through brokers in London using contracts on the London Metals Exchange as the underlying commodities
In addition to being capital-protected, Alternative Energy is a five-year fund giving investors the opportunity to benefit from the high performance of the underlying commodities
, with a potential gain of 14pc annually, and without any risk to their initial capital.
Participants in exchange trading include exchange members (who trade for their own accounts and execute customer orders), financial institutions, businesses that deal in the underlying commodities
, commodity pools (the futures equivalent of mutual funds), and individual investors.
Investment under commodities indexes has ballooned from around EUR70 billion at the start of 2006 to EUR235 billion in mid-April, about EUR90 billion of which has come from fresh financial flows with the rest coming from gains in the underlying commodities
, according to Lehman Brothers.