Agric. Econ. - Czech, 2006, 52(11):497-502 | DOI: 10.17221/5056-AGRICECON

The present significance of commodity exchange trading in the conditions of the current world economy

O. Rejnuš

Mendel University of Agriculture and Forestry, Brno, Czech Republic

The paper discusses the importance of commodity exchange trading while placing a special emphasis on the increasingly close interconnection between commodity markets and financial instruments markets. The aim of the paper is to prove that at present, commodity markets cannot be seen as strictly separate from markets trading in financial instruments, as there are increasingly close links between the two, which effectively lead to the transfer of financial resources invested in the financial market into the real economy. The paper analyses the most significant ties that already exist between the commodities and financial investment instruments in the financial and capital market, as well as the links that are very likely to come into existence in the near future. In the concluding part, there is a summary of the reasons that will necessarily lead to a further world-wide development of commodity exchange trading and a prediction of the lines along which this development is likely to take place.

Keywords: commodities, commodity exchanges, speculation, hedging, futures, collective investment funds, structured products, commodity exchange indexes, underlying assets, commodity derivatives, investment certificates, structured bonds

Published: November 30, 2006  Show citation