This important study was performed by CommodityPoint during the Fall and Winter of 2008 to assess the impact of changes in commodity markets on traders and the software used to support trading and risk management operations. At the time the study was first envisioned and initially defined, commodity markets were experiencing tremendous volatilities, increased trading volumes, and rapidly escalating prices; however, by the time the study was started, much had changed. The financial crisis had spilled over into all markets and spread to all major economies, commodity prices were in free fall, and credit markets were in a virtual melt-down. Fortunately, the timing of the market events was such that we were able to develop a survey questionnaire that allowed for a full examination of the market changes and impacts, both pre- and post-collapse. As a result, CommodityPoint believes the findings of this study to be extremely relevant and timely.
The study report includes the findings of the survey and interviews as well as analysis of the data commenting on areas such as:
- - Trading multiple commodities
- - Trading Other Asset Classes
- - Trading Volumes and Strategies
- - Critical issues in trading and risk management
- - Understanding the issues behind price formation
- - Market Liquidity
- - Risk analytics
- - How the current financial crisis impacts commodity traders
- - Impacts on physical traders
- - Impacts on C/ETRM software requirements
This research was kindly sponsored by Triple Point Technology and supported by SunGard Energy Solutions, HyperRig, Lacima Group, Accenture and SolArc.
