Betreiben Indexfonds Agrarspekulation? Erläuterungen zum Geschäftsmodell und zum weiteren Forschungsbedarf / Do Index Funds Speculate on Agricultural Futures Markets? Explanatory Notes on the Business Model and the Additional Need for Research

Prehn Sören, Thomas Glauben, Pies Ingo, Will Matthias and Loy Jens-Peter

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2013, vol. 64, issue 1, 421-442

Abstract: The huge number of transactions of index funds on agricultural futures markets have been criticized by the media and many other stakeholders. The criticism is often based on wrong information. To correct this information it is partly needed to fill some gaps by future research in this field. However, the following research lays out the basis for an objective discussion based on the current knowledge which shows that index funds follow a passive trade strategy that likely stabilizes prices. Therefore, trade restrictions by position or price limits may significantly harm the functioning of futures markets and will likely not solve the problem of volatile futures and cash market prices.

Date: 2013
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DOI: 10.1515/ordo-2013-0120

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