Tag Archives: volatility

As Gold and Silver Prices Change, Some Resources to Consider

The new trading year began yesterday with market participants pricing in new economic risk concerns directly impacting the price for gold and silver contracts on COMEX. Our February gold contract was up 2.2% yesterday and continues to trend upward today, while our March silver contract rose 5.9% yesterday, and has fallen back some today. Both contracts rebounded [...]

Your Favorite Open Markets Posts of 2011

We’ve covered the highlights of the blog this year, and the top magazine stories from CME Group Magazine. Here now are the top 10 most popular blog posts from 2011: 1. Understanding  Margin Changes 2. Why the ‘Two-Thirds’ Myth for Oil Price Referencing Doesn’t Add Up 3. Creating a Virtual Steel Mill 4. Making Sense of Volatility 5. Putting Crude [...]

Video: Terry Duffy Discusses Commodities on Fox Business Network

CME Group Executive Chairman Terry Duffy sat down with Neil Cavuto on Fox Business Network yesterday to discuss the factors leading to increased participation in commodities markets. Watch the latest video at video.foxbusiness.com

Keeping Corn Markets Operating Efficiently

In recent months, historically low levels of supply coupled with growing demand for corn and other macroeconomic factors have resulted in significantly increased corn futures prices and volatility. As a result, an increasing number of CBOT corn futures contracts have experienced trading disruptions due to price limits. In light of this volatility – to ensure [...]

Making Sense of Volatility

Editor’s Note: The post has been updated to include an additional graphic (Figure 3), illustrating margins vs. volatility in crude oil trading, April 14 to May 16, 2011. Volatility is a rather abstract concept, but for several reasons, it is also a fundamental ingredient in the functioning of a derivatives marketplace. Commercial interests only have [...]

A Closer Look at Circuit Breakers

Much attention has been devoted to the concept of “circuit breakers” in financial markets, particularly as we reflect on improvements made – and still needed – following the flash crash of May 6, 2010. I spoke on this topic at Georgetown University’s McDonough School of Business last week, emphasizing that equities markets should adopt automated [...]

The Open Markets Roundup: May 6

We’re all wrapping up another busy news week in the financial sector and, once again, the issues that filled many headlines involved the fundamentals of all markets: supply and demand. Following are links to several of the week’s most relevant articles: Margin Increases Didn’t Cause Silver Slide – CME Clearing Executive (The Wall Street Journal) [...]