In this paper, we aim to break down the recent developments at commodity trading entities at the micro-level, and how this ties into the global commodity supply chain with the current economics.
As an example of a recent breakthrough in the world of commodity markets, commodity prepay arrangements exemplify the new role that commodity traders play in financial intermediation.
We aim to stimulate international dialog among academics, policy makers and industry participants in the commodity trading and finance.
Specifically, we cover three critical components to the subject: first, the new trading and finance activities commodity traders are participating in, and how these activities link to their ultra-leveraged business model and the financial markets.
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Jacques, S and Simondet, A. (2016)“Traders or Commodity Finance Banks”, https://jacquessimon506.wordpress.com/2016/09/09/traders-of-commodity-finance-banks, Navigating the commodities markets with Freight and Spreads , September 9, 2016.