How is Coffee's settle price determined?
- Thread starter mizhael
- Start date
https://www.theice.com/productguide/ProductDetails.shtml?specId=15
All prices were lower than 168.25, all of a sudden the settle became 168.25,
possible?
All prices were lower than 168.25, all of a sudden the settle became 168.25,
possible?
Certain large interests influence the settlement price by transacting a high volume of contracts during the last minutes of trading to influence the VWAP calculation used by the exchange.
From time to time a hapless broker is caught doing this and banned, however the large interests are not named, punished, or otherwise deterred from this "illegal" market manipulation.
Large interests may also collude to fix the settlement prices.
The regulators are toothless and the real traders understand why and how this so called manipulation takes place.
Exhibit A: http://www.fsa.gov.uk/pubs/final/andrew_kerr.pdf
The mechanism for determining the settlement price can be discovered by reference to the exchange rules.
From time to time a hapless broker is caught doing this and banned, however the large interests are not named, punished, or otherwise deterred from this "illegal" market manipulation.
Large interests may also collude to fix the settlement prices.
The regulators are toothless and the real traders understand why and how this so called manipulation takes place.
Exhibit A: http://www.fsa.gov.uk/pubs/final/andrew_kerr.pdf
The mechanism for determining the settlement price can be discovered by reference to the exchange rules.