«When the review into LIBOR is looked at, it will of course include this market [the oil market], and will aim to publish conclusions by the end of September... as a result of this debate, and the arguments from my Hon. Friend [Robert Halfon], I will also write to the FSA about concerns raised today... It is absolutely right that we enhance
transparency in the oil and
commodity markets... It is clear from the data that there is a considerable time - lag involved [between oil
prices and petrol
prices].
Investing
in commodities indices that are constructed using long or short positions
in futures on physical
commodities whose value is determined based on the
price of the underlying physical
commodity plus yield and that trade on public markets that provide adequate liquidity and
transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining
commodities exposure and can provide a means for market participants to access the five components of the returns of the asset class.