The Organization for Economic Cooperation and Development (OECD) says a new report supports evidence that speculation does not increase the volatility of market price changes.
The OECD says the recent report confirms findings of previous reports performed in November 2008 and November 2009.
“There is no link between the increase in financial investment in commodities and the volatility of the prices of the physical commodities themselves,” the organization said in a statement.
The report comes amid efforts to rein in derivatives trading, particularly OTC markets, in both the United States and Europe. Some critics of speculation have argued that it has played a significant role in the financial crisis that has rippled through international markets the passed couple years.
