03.06.2013

Price Formation in Commodities Spot and Derivative Markets

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Task Forces

The unstoppable race of commodity prices comes at a critical moment, when European and US economies are languishing in regaining the ground lost as a result of the recent financial crisis. Policy makers and the public opinion are shrouded in a mist of mounting worries and anger around commodity prices. Regulators worldwide agreed in the G20 to address price volatility and are bringing forward a number of regulatory proposals to improve the regulation, functioning, and transparency of commodity markets.

This task force brought together financial and non-financial firms with regulators and academics to shed light on the price formation mechanisms in spot and future markets, focusing on three major areas: trading, market abuse, and competition. ECMI partnered once more with the Centre of European Policy Studies (CEPS) to engage the European institutions and the major experts in this area to provide input to this group. The task force was chaired by Ann Berg, a leading expert in commodities, commodity futures and food security issues. Research fellows Christian Egenhofer and Diego Valiante acted as rapporteurs, merging their expertise in environment and finance.

Chair

  • Ann Berg, Independent Consultant to International Organisations and former Board Director, Chicago Board of Trade

Rapporteurs

  • Diego Valiante, ECMI Head of Research - CEPS Research Fellow CEPS
  • Christian Egenhofer, Associate Senior Fellow, Climate Change, Energy CEPS

Please download the Task Force Prospectus to find a detailed account of the objectives, methodology and work plan of this task force.

Task Force Meetings

  • 1st meeting: Friday 30th September 2011
    • Energy commodities - sustainability of global supply and demand, market abuses and surveillance
  • 2nd meeting: Friday 21st October 2011
    • Energy commodities - sustainability of global supply and demand, market abuses and surveillance
  • 3rd meeting: Friday 18th November 2011
    • Raw materials - trading practices and financialisation, competition and market structure
  • 4th meeting: Friday 9th December 2011
    • Raw materials - market abuses and surveillance, sustainability of global supply and demand
  • 5th meeting: Friday 20th January 2012
    • Agricultural commodities - market abuses and surveillance, sustainability of global supply and demand
  • 6th meeting: Friday 10th February 2012
    • Agricultural commodities and food - trading practices and financialisation, competition and market structure
  • Lauch event: 2013

Final Report of the Task Force: 'Price Formation in Commodities Markets: Financialisation and Beyond​'

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