CFTC releases report on sharp price movements in the commodity futures markets

By R. Jason Howard, J.D. After analyzing 2.2 billion transactions from 16 of the most actively traded futures contracts in all major market sectors from 2012 through 2017, the CFTC’s Division of Market Oversight (DMO) reported sharp, intraday price movements in the commodity futures markets. Key findings. The CFTC release mentions the key findings from the research, including:Neither the frequency nor intensity of sharp price movements appear to be consistently increasing over time;Sharp price movements are linked to volatility, market fundamentals, and news and data releases; and, significantly, this research does not show signs of weakness or fragility in the futures markets causing disruptive price movements; andMost importantly, the U.S. commodity futures markets are very efficient, incorporate new information quickly, and continue to support the price discovery process.The research also covered noteworthy Flash Crash events, including: On May 6, 2010,…

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