CRA experts discuss how the regulatory environment for commodity derivative markets is changing, with increased efforts to monitor and deter commodity price manipulation. The economics of manipulation is highlighted by examining the ongoing civil case CFTC vs. Arcadia Petroleum and Parnon Energy et al. The article also differentiates the impact of manipulation and speculation on commodity prices.
Market expectations and security prices
Market participants use the information available to them at any given time to form expectations of the future performance of a company and a company’s stock...