The Commodity Marketplace
The Role of a Commodity Exchange in an Emerging Economy:
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Reliable market intelligence/information both pre and post trade.
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Market-based policies/regulation to reduce emissions of greenhouse gases.
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More efficient/cost effective markets.
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Improved market access.
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Improved price discovery.
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Quality standards.
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Improved communication.
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Full transparency.
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Enforceable contracts/dispute resolution.
Exchange Services:
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Common Trading Platform.
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Risk Mitigation
- Buyer deposit.
- Margin deposit.
- Buyer deposit.
- Margin deposit.
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Cash management.
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Clearing and Settlement.
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Logistics management.
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Decision support.
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Data services/Market information.
Beneficiaries:
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Producers, Traders, Speculators, Buyers
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Processors, Storage Owners, Transporters.
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Government.
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Suppliers.
Benefits:
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Market access.
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Increased liquidity, market access.
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Higher prices for quality.
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Transparent deals and prices made public.
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Enforceable contracts.
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Much improved communication.
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More efficient and cost effective markets.
