Back to the Future(s): The Best Commodities Benchmarks Are Still Physically-Settled

Since 2002 and the advancement of financially-settled energy products via the NYMEX ClearPort platform — incumbent futures exchange operators have mostly neglected physically-settled markets. This created problems. Why? We dig into the issues below and present tangible arguments why today’s LNG and other global commodity markets require physically-settled benchmarks for better price discovery, more reliable hedging, and improved risk management.

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Ranting on the inadequacies of our systems and riffing on ideas for how to solve them …

SmarterMarkets™ brings together the icons and entrepreneurs of technology, commodities and finance to examine how market systems can be redesigned and improved to address the most important challenges of our time.