Behind each of them, remember there is a Bank. Continue reading
As we explained in Jacques, S and Simondet, A. (2016)“Traders or Commodity Finance Banks”
The frontier between traders and commodity finance banks is not as exactly clear as one might say.
The paper links the role of prepay with market risk. Continue reading
The shipping trade is nested by an ancillary web of commodity sale & purchase contracts crafted by traders to create “the ultimate trading optionality”actionable unto the smallest decision timeframe possible !
Disputes arise when the liabilities and risks of such trade innovations are not carefully apportioned in the S&P contracts. Moreover some organizations exert an operational veto on the commercial operations of others because of physical/logistical constraints and in some case because of their natural bottleneck monopoly. Continue reading