Regional stock exchanges, market players go big on commodities as interest spikes
Market players expand offerings to make it easier to ride interest in commodity derivatives and futures options
MACROECONOMIC uncertainty is driving both institutional and retail investors in the region towards safe-haven assets and alternative investment options that could buffer portfolios from shocks.
Market players in South-east Asia polled by The Business Times said they have noticed a pick-up in interest in commodity derivatives and futures options, and are looking to further capitalise on the growing demand by introducing new options and making it easier for investors to dabble in the commodities sector.
Commodity derivatives are typically only available to institutional investors such as hedge funds, pension funds or commercial banks, who utilise this asset class as a hedge against risks typically associated with the commodities themselves.
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