Recommendations in a recently released report by the United Nations Conference on Trade and Development (UNCTAD) would have a dramatic effect on commodity markets and the managers that use them if adopted.
The report, "Price Formation in Financialized Commodity Markets: The Role of Information," released in June, states that the "financialization" of commodity markets has changed trading behavior and significantly affects the prices of such basic goods as staple foods.
While other critics of increased speculation in commodity markets focused on the role of passive long-only investments, the UNCTAD report talks about trend-following activity and how it is characterized by herd behavior. The report argues that this widespread herding seriously distorts the price discovery mechanism of markets.
In addition to more general recommendations of greater transparency and position limits, the UNCTAD report proposes "targeted interventions by the competent market authorities to deflate price bubbles and help market participants better recognize market fundamentals."
Campbell names president
Campbell & Company announced in June the appointment of Stephen Roussin as president. Roussin most recently served as managing director and head of investment solutions for UBS Wealth Management Americas. He will assist Campbell CEO Terri Becks with the day-to-day management of the firm, supported by the firm’s executive committee.
Hot New CTAs
Futures is once again looking for the best new commodity trading advisors to profile in our annual, "Hot New CTAs." If you will have managed customers’ funds for at least one year as of the end of August and have less than $25 million under management, e-mail your disclosure document and audited track record to firstname.lastname@example.org, or send it to Futures Magazine, 222 S. Riverside Plaza, Suite 620, Chicago Il. 60606, Attn. Dan Collins. Deadline: Friday, Aug. 19