Special Issue "Editorial Board Members’ Collection Series: Financialization of Commodities Markets"
A special issue of Commodities (ISSN 2813-2432).
Deadline for manuscript submissions: 1 March 2024 | Viewed by 356
Interests: NASDAQ stock market; managed investment fund; day trading; initial public offerings (IPOs); electronic trading; futures trading in commodity markets; trading behavior
Interests: renewable energy; investment analysis; project financing; public–private partnership; Islamic finance; agricultural economics; circular economy; corporate social responsibility; productivity analysis; organizational models; digital innovation
Special Issues, Collections and Topics in MDPI journals
Special Issue in Sustainability: New Challenges for Sustainable Organizations in Light of Agenda 2030 for Sustainability
Special Issue in Sustainability: Circular Economy: Innovative Approaches to Circularity Toward Green Transformation and Blue Growth
Topical Collection in Energies: Review Papers in Energy Economics and Policy
Special Issue in Energies: Feature Papers in Energy Economics and Policy
Materially, the financialization of commodity markets began almost two centuries ago when the risks of commodity markets were transferred to financial investors through forward and other derivative contracts. However, the term has been more recently coined for when institutional investors, mainly through commodity swaps and derived indexed products, increase exposure to this market segment using modern portfolio theory as a guide. Using swap dealers as the main conduit to established futures markets, the associated institutions have been perceived as having a significant influence on price formation and, in particular, volatility. The term “financialization” is often associated with the claim that commodity price movements are being increasingly driven by financial (portfolio) considerations and less by commodity-specific factors. Some argue that this leads to excessive price volatility and, thus, to higher real costs and potential welfare losses for commercial participants in the commodity sector. These conjectures have triggered a large body of empirical research investigating the price discovery process in commodity and commodity futures markets, paying particular attention to the role of “financial” investors.
We are seeking papers that can be grouped, according to the research questions they address, into three categories: First, papers about the impact of financial investors (sometimes coined as “speculation”) on commodity price level, returns, or risk premiums. Second, papers that examine the impact of speculation on price volatility—either commodity specific or considering the market segment (index) as a whole. This also includes research on the impact of speculation on the price discovery process, i.e., the adjustment of spot vs. futures prices on macroeconomic and financial market disturbances. This leads to the third strand of research, namely the transmission of shocks between (and within) commodity markets. Such research focuses on the lead–lag relations of various market segments in relation to speculative activity (as separate from the correlation effects of financialization and their impact on risk diversification).
With this Special Issue, we seek to provide insight related to the empirical findings on financialization, including assessments of the impact of data quality, specification of variables (e.g., futures prices and returns, speculation proxies), model selection and estimation (including estimation periods), and choice of asset universe. We seek papers that are particularly focused on empirical and methodological questions and provide insight on the sensitivity of empirical findings against sample selection, variable measurement, and model specification.
Although the number of research papers on financialization has sharply increased in the past two decades, the metastudy of Haase, Seiler, and Zimmermann (J Commod Mark, 2016), covering some 100 published papers, indicates that the quality of some published papers is extremely heterogeneous in terms of methodology, data, and empirical measures, such that the results are often not traceable and difficult to compare. This calls for further, careful empirical research utilizing more recent data.
Prof. Dr. Jeffrey H. Harris
Dr. Donato Morea
Prof. Dr. Heinz Zimmermann
Manuscript Submission Information
Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.
Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Commodities is an international peer-reviewed open access quarterly journal published by MDPI.
Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1000 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.
- commodity index trading
- speculation in commodity markets
- price discovery
- the transmission of shocks between financial markets and commodities