Speculation and informational efficiency in commodity futures markets

We use recent data of the CFTC to re-assess effects financial traders on informational efficiency in commodity futures markets. To do so, we focus excessive volatility as a means reflect noise price discovery process. show that role is more complex than often assumed literature. Researchers should distinguish between trading motives market actors, well increases and decreases open interest. Several findings stand out. In particular, find short-term fluctuations interest might primarily be driven by speculators’ demand for liquidity, traditional speculators, identified MM category CFTC, may responsible increasing several