We are a company that connects the largest community of participants in all major markets at key phases of the investing, trading, hedging and capital raising life cycle.
Our comprehensive markets, clearing houses and data solutions mean that we uniquely deliver more mission critical markets, risk management and data for our customers’ workflow than any other exchange operator in the world.
With a leading-edge approach to developing technology platforms, we have built market infrastructure in all major trading centers, offering customers the ability to manage risk and make informed decisions in the geography of their choice.
By leveraging our core strengths in our markets, clearing, data and technology, we continue to identify new ways to serve our customers and transform global markets.
As our electronic markets and demand for clearing has grown, access to new sources of information became central to our customers and data has increasingly become the lifeblood of markets. We saw this evolution and consistently we advanced our capabilities, building a data business which is complementary to every part of our solution.
INVESTING IN COMMODITIES
There are several ways to consider investing in commodities. One is to purchase varying amounts of physical raw commodities, such as precious metal bullion.
Investors can also invest through the use of futures contracts or exchange-traded products (ETPs) that directly track a specific commodity index. These are highly volatile and complex investments that are generally recommended for sophisticated investors only.
Another way to gain exposure to commodities is through mutual funds that invest in commodity-related businesses. For instance, an oil and gas fund would own stocks issued by companies involved in energy exploration, refining, storage, and distribution.
ADVANTAGES OF COMMODITY INVESTING
Over time, commodities and commodity stocks tend to provide returns that differ from other stocks and bonds. A portfolio with assets that don’t move in lockstep can help you better manage market volatility. However, diversification does not ensure a profit or guarantee against loss.
Individual commodity prices can fluctuate due to factors such as supply and demand, exchange rates, inflation, and the overall health of the economy. In recent years, increased demand due to massive global infrastructure projects has greatly influenced commodity prices. In general, a rise in commodity prices has had a positive impact on the stocks of companies in related industries.
Potential hedge against inflation
Inflation, which can erode the value of stocks and bonds can often mean higher prices for commodities. While commodities have shown strong performance in periods of high inflation, investors should note that commodities can be much more volatile than other types of investments.