Structured Products Based on Commodities and their Economic Significance

Oldřich Rejnuš

Abstract


Purpose of the article: The article deals with issues of contemporary interconnecting of commodities market with financial investment instrument markets, with special regards to the influence of contemporary changes in commodities trading and creating individual sorts of structured products based on commodities. Considering the fact that mutual interconnections between commodities and financial investment instruments are not random, where, beside its theoretical interestingness, they have their insignificant economic importance, the aim of the article is to analyse contemporary utilization of individual sorts of commodity structured products both from the point of view of theoretical nature and, before all, their economic importance. In connection with it, reasons of contemporary spreading of synthetic financial derivative instruments derived from commodities, commodity stock exchange indexes or individually constructed, so called commodity baskets, are explored. And last but not least, it deals with a question whether this is just a temporary situation or continuation of the phenomenon can be supposed.
Methodology/methods: The article deals with system analysis of relations between commodity underlying assets and individual sorts of structured products and analysis contemporary changes in ways how commodities are traded in stock exchanges; it is focused on how they influence creating structured products.
Scientific aim: The aim of the research is to specify both positive and negative aspects of mutual interconnection of commodity instruments with individual structured products and to predict future development in this field with regards to possible influences on world economy.
Findings: The article explains contemporary changes in the way how commodities are traded at world stock exchanges and it specifies both positive and negative influences of these changes on world economy.
Conclusions: Based on accomplished analysis of connections between underlying commodity assets and individual sorts of structured products as well as contemporary changes of ways of commodities trading at stock exchange, internationally coordinated state regulation is recommended as well as stricter supervision of institutions working in this area.

Keywords


commodities; derivative instruments; structured products; underlying assets; exchange commodity indices; commodity baskets

JEL Classification


G1

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Online: 2014-06-09