(2) In speaking of price relationships between different delivery
months of a given commodity, one is said to be «'' trading at a premium» over another when its price is greater than that of the other.
Not exact matches
A few
months after this particular conference I was back in Sydney to speak at another conference, and after I spoke, Gerard Minack, former chief strategist at Morgan Stanley Australia,
gave his own presentation on the world economy and, more specifically, on the slow - turning battleship
of expansion in the production
of hard
commodities.
An ETF that employs a basic strategy
of investing in the front -
month futures contract
of a
given commodity, for example, will either see its returns decrease in the case
of contango, or increase in the case
of backwardation.
In the September quarter, the terms
of trade reached its highest level in 26 years, and it is likely to have risen further over recent
months given the continued strength
of international
commodity prices.
Examples include buying one futures contract and selling another futures contract
of the same
commodity but different delivery
month; buying and selling the same delivery
month of the same
commodity on different futures exchanges; buying a
given delivery
month of one futures market and selling the same delivery
month of a different, but related, futures market.
Registration as a CTA is required by the National Futures Association for individuals or firms who provide advice on
commodities trading, unless one
of the following requirements are met: advice is
given to a maximum
of 15 people over the past 12
months and the individual / firm does not hold itself to the public as a CTA; the individual / firm is engaged in one
of a number
of businesses or professions listed in the
Commodity Exchange Act or is registered in another capacity and the advice given in relation to commodities investing is incidental to the individuals profession or the firm's principal business; or the advice being provided is not based on knowledge of or targeted directly to a customer's commodity interest
Commodity Exchange Act or is registered in another capacity and the advice
given in relation to
commodities investing is incidental to the individuals profession or the firm's principal business; or the advice being provided is not based on knowledge
of or targeted directly to a customer's
commodity interest
commodity interest account.
Subtitle E: Additional Market Assurance -(Sec. 351) Amends the
Commodity Exchange Act to: (1) require energy derivatives to be traded on a CFTC - regulated exchange unless CFTC issues an exemption; (2) require CFTC to fix limits, with respect to energy transactions, on the aggregate number
of positions which may be held by any person for each
month across all markets subject to the CFTC's jurisdiction; (3) require CFTC to convene a Position Limit Energy Advisory Group to
give CFTC recommendations on such position limits; (4)
give CFTC exclusive authority to grant exemptions for bona fide hedging transactions and positions from position limits imposed on energy transactions; (5) revise provisions concerning bona fide hedging transactions; and (6) require CFTC to issue a rule defining and classifying index traders and swap dealers for the purposes
of data reporting requirements and setting routine detailed reporting requirements for any position
of such entities in contracts traded on designated contract markets, over-the-counter markets, derivatives transaction execution facilities, foreign boards
of trade, and electronic trading facilities with respect to significant price discovery contracts.