The results presented are based upon the daily closing quotations for both the ASX All Ordinaries Share Price Index and Accumulation Index, on the daily closing prices for the futures contracts
written on the ASX All Ordinaries Share Price Index,(4) and the daily closing interest rate for the certificates of deposit.
While one accounting regulation permits companies to defer gains and losses on futures contracts
hedging anticipated interest-rate and commodity price risks, another prohibits deferrals on foreign-currency forwards and swaps for hedging anticipated foreign-currency transactions.
Buying and selling futures contracts
also entails much lower "market impact costs"--an investor is more likely to get a better price when making one transaction than when making several.
As with other Teucrium funds, the Teucrium WTI Crude Oil Fund is designed to mitigate the effects of the costs of carrying and rolling the futures contracts
held in the fund, by rolling only twice a year, unlike many first generation commodity funds that typically hold contracts for only a single month and roll 12 times a year.
The new Euro-Swap Futures contracts
are based on euro-denominated interest rate swaps with varying maturities (2, 5, 10 and 30 years) and fixed rates.
In addition, trading in Copper Futures contracts
will also allow international investors to benefit from the increasing liquidity pool of the Middle East.
Angus Campbell, Head of Sales at Capital Spreads, believes that 'traders with a longer-term view may opt to trade futures contracts
as opposed to rolling daily contracts'.
He said volumes for the DGCX Indian rupee-dollar futures contracts
had steadily increased since the exchange enhanced the contract last year.
DME brent and oman crude oil financial contracts to commence trading on the dubai mercantile exchange on june 2nd 2008The Dubai Mercantile Exchange Limited (DME) today announced that as of trade date 02 JUNE 2008, customers of the DME will be able to trade the Exchange's two new financially settled futures contracts
for Brent and Oman crude oil in addition to its benchmark DME Oman Crude Oil Futures Contract
An LNG contract could help invigorate spot trade in the product, which is now sold primarily on the basis of decades-long contracts, and would aid efforts to arbitrage cargoes between Asia and Europe and the US, where pipeline gas futures contracts
are already actively traded.
On May 27, the London Metal Exchange (LME) will officially launch two futures contracts
for "barefoot" (no additives) PP and LLDPE.
Management wants to buy futures because it expects changes in the price of grain will be offset by changes in the price of the futures contracts
during the same time period.