Comment: Market cops at war: the risks of over-regulation

Better regulation of the financial sector is clearly needed, but the headlong rush to tighten rules is more likely to create problems, argues Philip McBride Johnson. The usual result is overlapping jurisidictions and over-complex rules, ripe for gaming.  [more]

Is there any way to stop another oil bubble?

Few in the oil market accept that the price spike of 2008 was caused by speculators – yet alternative explanations are unconvincing. And most say another bubble will come. Even if pure market forces are the cause, politicians will seek defences against 2008 repeating itself. As Sian Williams reports, the industry does not want a clampdown on speculation, but has little to offer regulators as an alternative.  [more]

Crunch time: will human or machine outperform in perilous markets?

Algorithmic trading is a well recognised feature of futures and options markets, but many believe that despite its high profile, the technique is still only beginning to make itself felt. If algos are still on a steep growth curve, how has that been affected by the financial crisis? Has it made things easier or harder for the algos? And have they suffered less or more than human-driven trading firms? Vishala Sri-Pathma investigates.  [more]

Chinese financial futures: the world’s biggest non-market

Few doubt that Chinese financial futures are going to be massive. But will any of us live to see it? The China Financial Futures Exchange is ready and waiting, and so is its first product, a future on the CSI 300 stock index. Market participants are eager to trade. But when they will get permission is anyone’s guess. As Agnieszka Troszkiewicz reports, firms are waiting for the off with a mixture of phlegmatic patience and irritation.  [more]

High tech agri exchange seeks new traders to reverse decline

National Commodity & Derivatives Exchange plays a pivotal role in India’s agricultural markets, as the leading futures exchange for crops. Volume has been hammered by bans on trading some foodstuffs in the wake of price rises, and by the global downturn. But as Agnieszka Troszkiewicz reports, NCDEX wants to broaden its activities and extend its reach even further into rural India.  [more]

Flowers: tradable commodity or manufactured good?

The international market for cut flowers is worth over $100bn a year – twice the size of the copper trade. The market is becoming increasingly electronic and sophisticated. Could a futures market bloom? Siân Williams investigates.  [more]