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Adi Imsirovic () and Colin Bryce ()
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Adi Imsirovic: Surrey Clean Energy
Colin Bryce: Energex Partners

Chapter Chapter 17 in The Rivers of Money, 2025, pp 291-314 from Springer

Abstract: Abstract This chapter explores the transformation of oil derivatives markets in the aftermath of the Great Recession, focussing on the rise of new market-makers like Onyx Capital and others who filled the gap left by retreating investment banks. It delves into how firms such as Onyx, DV Trading, Dare, and Jane Street adopted technology-driven strategies, leveraging electronic trading platforms, quantitative models, and a STEM-oriented workforce to provide much-needed liquidity in oil derivatives markets. The chapter examines the increasing influence of high-frequency traders and algorithmic trading, alongside the evolving role of traditional traders like Vitol, Trafigura, and Shell who continue to capitalise on asset-backed strategies. Additionally, it analyses pivotal moments like the 2020 negative oil price event, the inclusion of WTI Midland in the Brent benchmark, and the broader impacts of geopolitical events, including Russia’s invasion of Ukraine and the growth of U.S. shale oil. The narrative concludes by weighing the benefits and potential risks of financial innovation, regulatory oversight, and the enduring relevance of human expertise in an increasingly automated market landscape.

Keywords: Liquidity providers; Trading platforms; New Brent benchmark; Traditional traders; Russia’s invasion of Ukraine (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-91806-3_17

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DOI: 10.1007/978-3-031-91806-3_17

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