Archive for the ‘Futures and Commodities’ Category

CFTC expects to register close the gaps

Have you ever wondered if what you know about “CFTC expects to register close the gaps” is accurate? Consider the following paragraphs and compare what you know to the latest info on “CFTC expects to register close the gaps”.

Todd Shriber

The Commodities Futures Trading Commission (CFTC) is trying to crack the Dodd-Frank legislation to prevent hedge funds and other investment funds skirt the registration requirement in an attempt to control the government.

CFTC tried the exemptions from registration for commodity pool operators (CPO) is invalid and must CPOs and Commodity Trading Advisors (CTA), claiming exemption to file annual notifications, according to a law firm in New York and Sadis Goldberg.

Sadis & Goldberg says, the CFTC will also CPOs and CTAs, which are exclusively registered with the CFTC, have to submit detailed reports on their activities in commodities. "CPOs and CTAs must also be more open to risks associated with swaps linked.

Once you begin to move beyond basic background information, you begin to realize that there’s more to “CFTC expects to register close the gaps” than you may have first thought.

CFTC has stated that these measures on the terms of the Dodd-Frank, but is consistent with the statutory objectives, as Sadis Goldberg. All registered CPOs and CTAs are required to submit claim forms to the CFTC. But the amount of information the agency collects from each company rises to $ 150,000,000 and $ 1,000,000,000 in assets under management, according to the international law firm.

Sadis Goldberg told clients on CPO or CTA invoke exceptions to stay ahead of tomorrow CFTC rules, while Akin Gump, said the proposed rule change will result in a major new administrative burdens. "

This can be a shot in the dark, but it seems reasonable that CPOs and CTAs to choose which are currently registered with the CFTC, the price of a reason to take. You do not want to enroll in the first place, so that the prospect is likely to be further regulated very unattractive.

Let Uncle Sam to suck all the fun and adventure of the futures trade.

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Those who only know one or two facts about “CFTC expects to register close the gaps” can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you’re learning here.

Introduction to Commodity Futures Trading

The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.

More information about the stock market by reading this article. Knowledge is important when it comes to trade futures.


What are commodities?

The words "property" and "future" are often used to describe trading or futures trading. You can think of them as generic terms to describe the markets. This corresponds to how "people" and "actions" that are used when investors are on the exchange. To be more precise, what they really mean: Commodities are the actual physical goods like corn, soybeans, gold, oil, etc. are contracts traded commodity futures exchange in the future, as the Chicago Board of Trade (CBOT). Futures contracts has grown more than just commodities, futures contracts are now in financial markets than the S & P 500, T-notes, coins and many others.


Futures Contract: December 2007 corn, the 2007 is a contract of 5000 bushels of corn, December, traded on the Chicago Board of Trade with a contract that expires in.

  • A hypothetical price of that contract may be $ 3.60 per bushel.
  • How futures work?

    Hopefully the information presented so far has been applicable. You might also want to consider the following:

    Futures are standardized contracts between buyers and sellers of goods, indicating the quantity of a product, grade / quality and location of delivery. Were trading in futures contracts in a futures market instead, and how the stock market completely anonymous.

    For example, the buyer could be an end user, such as Kellogg's. You have to buy corn to make corn. The seller is likely that a farmer has to sell his corn crop. Create a contract in December corn futures at the current market price. A contract for corn at the CBOT is composed of 5,000 hectares. Why farmers to 5000 tonnes of maize from Kellogg's have delivered in December in a particular place.

    To raise money in the future

    A speculator is a person who invests in a company with the goal of making profit. For commodity traders speculators who buy low and sell them in the future are still trying to make money. The reason is that speculators can do that is with the future, that dealers are not required to hold futures contracts for the contract, sell it, or may at any time.For example, Kellogg's past use, a speculator, the Treaty of grain farmers a certain price, buy, then wait for the price of corn before selling the contract products rise to Kellogg's, although generating the contract is not within a few months a profit in the process.

    Actors involved in commodity trading

    There are three types of actors in the commodity markets:

    1. Advertising: The units of product in the production, processing and marketing of a product. For example, corn farmers and the Kellogg's ad example above. Advertising for the majority of trading in the commodity markets.
    2. Large speculators: A group of investors who pool their money together to reduce profits and increase risks. As an investment fund in the stock market speculators have a lot of money managers, investment decisions by investors as a whole.
    3. The small speculators, traders person acting on his own goods or a commodity broker. Both large and small speculators are known for their ability to shake the known commodity market.

    How to start trade products

    To trade goods should be brought up in the futures contract specifications of each product and of course you learn trading strategies. Commodities have the same reasons as any other investment – you want to buy low and sell high. The difference in raw materials is that they are deeply in debt and in order sizes rather than shares. Remember that you purchase and short positions when the markets are open, so be sure you do not need to take to the delivery of a truckload of soybeans.

    We hope you enjoy this article on the trading of futures and got involved understand the market for commodity futures trading.

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    Take time to consider the points presented above. What you learn may help you overcome your hesitation to take action.

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Cocoa futures product by unrest in Côte d'Ivoire shaken

Would you like to find out what those-in-the-know have to say about “Cocoa futures product by unrest in Côte d'Ivoire shaken”? The information in the article below comes straight from well-informed experts with special knowledge about “Cocoa futures product by unrest in Côte d'Ivoire shaken”.

Cocoa prices rise in four days

If the ban is effectively enforced, are islittle doubt that the announcement caused a stir trading floors. The London Stock Exchange, for example, LIFFE cocoa futures rose by4.5% in just four trading days (January 20-25). Sales in four days, more than 40,000 futures contracts, with the standard size ALIF cocoa contract is 10 tonnes. Dealers go (now) long, 20 Januaryand short (sell) on 25 January at the top of the results aprofit season trade of about $ 1,000 per contract. Traders go long on 100 lots (contracts standard 10 tons) would be 20th January, a margin of between $ 200,000 and from user $ 1,000,000 (by rank) in the commercial peak of U.S. have been required accountsto income of $ 100,000 (as of late January 25).

Interestingly, alleviate the recent news from West Africa was some anxiety as previously TOA nerve in his pockets. Tolocal official figures on 4 February Chargers released Cote d'Ivoire and 80 415 tonnes of cocoa processors declared cocoa for export from January 21 February to3, the total for the 2010/2011 season to 653 719 tonnes, according to officers. This represents an increase of 4% ondeliveries in the same period last year. This suggeststhat increase political instability in the region has too much influence to beandeliveries cocoa processing companies, despite the uncertainty that has recently caused amongtraders.

Future Directions

The latest data on the transition from Côte d'Ivoire are to ICCO (International Cocoa Organization) has recently – and optimistic – productionpredictions. The Director General, Jean-Marc Anga said earlier Januarythat ICCO expected global cocoa production to an increase of 6.8% over the previous year to 3.8million tonnes in 2010/2011 growing season to achieve. If the actual production thesepredictions the overall growth of cocoa production game significantly higher than in theprevious season. ICCO latest estimates, the end of November 2010, showeda weak increase of 0.2% of world production of cocoa and a decrease of 5% of the population are published on cocoa 2009/2010.

Now that we’ve covered those aspects of “Cocoa futures product by unrest in Côte d'Ivoire shaken”, let’s turn to some of the other factors that need to be considered.

On the other hand, pressure from the international financial environment unless agricultural trade. The steady increase in cocoa futures in the first half of 2010 was driven in part by priceswitnessed financialturmoil in peripheral EU countries.The uncertainty about the ability of these countries – especially France – to participate in reduction policies aggressive deficit and the threat of a possible fragmentation of the European Monetary System Unionprompted an influx of highly liquid investments in U.S. dollar interest rates allowed commodities.Historically under massive debt EUR that new werein invested in commodities such as cocoa. Cocoa traders settle back not only to increase as a result of the increased demand for chocolate inemerging markets, but also by the additional yield on the backs of the U.S. dollarappreciation positionswould.

Looking ahead, the prospect of a rapid increase in the value of the dollar Theus likely witness in the first half of 2010 will be repeated theShort in the term. There is a consensus that the second round of quantitative easingprogramme – announced by the U.S. Federal Reserve in late 2010 – could have aweakening effects in dollar value. In addition, recent data from Theus Bureau of Economic Analysis published by the current importance of exports to GDP Theus recovery. Understandably, there is little incentive for U.S. monetaryauthorities the value of its currency to increase.

Meanwhile, the euro zone, strong GDP growth in Germany and theimplementation strict deficit reduction programs in the periphery of a stabilizing economieshave moderate – if not reduction – Treasury Bond differentials of 10 years in countries such as Spain and Portugal. All these factors havecontributed to a moderate recovery of confidence in the euro zone and the euroitself.

Brokerage houses on both sides of the Atlantic have plunged factors inthe new financial environment and the supply of cocoa in their positions. ICCO price instead of 9 February was U.S. $ 3,354 per liter. At the Chicago Board of Trade (CBOT), was cocoa futures for March delivery U.S. $ 3,272 / T (9 Februaryclose) – 2% lower than current spot prices ICCO.

For the minority of traders who will receive the underlying physicalcommodity uses the current stability has long been a way to call (Rightt sell) positions want to be on many medium (May delivery) address. to mark this wouldallow cocoa processors in the budget for the introduction of cocoa resistance levels (from highest to future projections) in the U.S. $ 3,300 per tonne. The latterwould be one of several possible strategies for anticipating potential increasein the price of cocoa in connection with the deteriorating political situation in West Africa.

The day will come when you can use something you read about here to have a beneficial impact. Then you’ll be glad you took the time to learn more about “Cocoa futures product by unrest in Côte d'Ivoire shaken”.

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