Secuencia de la experimentación

Natalia Maximchook – Msc in Business studies, aston Business school, uk; Deputy Head of the strategy and research, EDB. she worked for more than ten years in un organisations. she has contributed to various publications on the subjects of good governance, regional cooperation in Central asia, external aid coordination, and corporate social responsibility, and is currently engaged in developing interaction between the financial markets of the single Economic space member states.

E-mail: [email protected] Natalia

Maximchook

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SuMMARY

Commodity exchanges account for nearly 20% of operations involving trade in raw materials. this fact predetermines the role international commodity markets play in establishing and regulating world prices. Exchange quotations serve as price indicators for nearly all of the global trade in grain, cocoa beans, cotton, rubber and many other commodities. Exchange operations are used to hedge against commodity price volatility. the commodity exchange is not only a place for concluding transactions, but an information centre concerning any particular traded commodity. this market and price information is also used in the off-exchange trading.

Commodity exchanges have evolved from local markets trading physical commodities to high-liquidity international markets trading futures and forward contracts. Many research examined the development role of commodity exchanges. un Conference on trade and Development (unCtaD) sees commodity exchanges as trade-facilitation institutions able to stimulate economic growth in developing countries by reducing transaction costs along the commodity supply chain (unCtaD, 2007). it suggests a link between activity on commodity exchanges and improvements in the wider environment of commodity sectors. in many developing countries exchange mechanisms promote the wider involvement of isolated commodity sector participants in

Natalia Maximchook. “Developing commodity exchange trading

in the single Economic space ” EConoMiC CooPErationaDVanCing FunCtionaL

economic relations. it should be remembered that profits are not generated merely by the establishment of a commodity exchange. Viable commodity exchange mechanism requires complex regulation and involvement of a government.

Exchange trade is continually developing and trading operations and instruments are becoming ever more complex. notable trends in the sector include: a reduction in the number of commodity exchanges; the transformation of specialised into universal commodity exchanges; changes in the role and function of the commodity exchange as a financial institution; technological developments and growth in the number of commodity exchange participants; the gradual unification of commodity exchange on a global scale; and changes in the way commodity exchange operations are regulated.

the revival of activity on the russian commodity exchange was a milestone in the country’s transition to a market economy. Despite its turbulent history, the russian commodity exchange sector is following international development trends thanks to its adoption of international standards and best practices in the operations of russian exchanges and market regulators and the proximity of highly competitive foreign markets. Exchange trading in kazakhstan has still not matched turnover it enjoys in the West and in russia. the country’s commodity exchange sector is still in development. However, for kazakhstan, as the exporting country with huge raw material and agrarian capacity, the proliferation of exchange trade is seen as viable instrument. With the creation in 2008 of the Eurasian trading system (Ets) and adoption of Law on Commodity Exchange in 2009, kazakhstan has entered a new phase in commodity trade development.

the research undertaken jointly by the EDB and the iaE Cis has shown that national commodity market regulation in russia, kazakhstan, Belarus and ukraine is hindering inter-exchange cooperation on organised commodity markets. it is now time to define and adopt priorities for the development of an organised inter-state commodity exchange. it is clear that the differences in legislation on organised commodity trade are a serious barrier to inter-exchange cooperation.

the results of comparative analysis of the legislation on organised commodities market in sEs countries be used to develop a comprehensive commodity exchange model for sEs countries, based on common principles of operation, provision of access to professional participants, regulation of trading floor procedures and size of assets, information transparency, contract guarantees and risk management.

a large number of issues will need to be addressed in order to achieve the necessary level of legislative unification between the member states. this will require collaborative efforts by regulators, commodity exchanges, industry

association (iasE Cis) and other interested parties. a special oversight authority dedicated to the sector should be created to coordinate development efforts in the organised commodity market, similar to those established for the stock markets in the Cis and EurasEC regional organisations.

the effect of commodity exchange on development and trends in exchange trading

specialised international organisations study the issues related to the development of trade and the impacts of trade on development. one of the leading agencies in this field is the unCtaD. this agency published wealth of studies to this matter. in one publication on the development role of the commodity exchanges (unCtaD, 2007a) commodity exchanges are seen as trade-facilitation institutions that can trigger growth in developing country commodity sectors by reducing transaction costs along the commodity supply chain. the research suggests that there is a link between commodity market activity and an improved environment for the development of related sectors. if, for example, the commodity exchange stimulates development of a network of storage facilities to improve delivery and collateral management, this can have a positive effect on storage and logistics infrastructure for traded commodities. the presence of a reliable system of credit – in particular for warehouse receipts – may, in turn, lower the banks’ credit risk for agricultural producers and increase the attractiveness of trade financing.

a substantial body of knowledge has been built on development impact of commodity trade, including a collection of case studies, based on countries’ experiences on developing commodity exchanges. in Latin american countries, for example, “innovative application” of the commodity market mechanism has led to the greater involvement in economic relations of previously isolated commodity sector participants. Financing mechanisms is one of several broad categories in which the use of exchange mechanisms was put to good use. Commodity exchanges in Colombia and the Bolivarian republic of Venezuela, for example, created mechanisms that allow the commodity sector to plug into local capital markets via trade on the exchanges of farmers’ repurchase agreements, thus bypassing the banks. these tools are especially attractive in instances where banks are reluctant to deal with high agricultural risks. another area of innovation has to do with an upgrade of physical markets. in 2002, Brazil’s BM&F founded Brazilian Commodity Exchange (BBM) as a dedicated agribusiness exchange. it linked agriculture, commerce, industry, finance and government. Having effectively united six previously isolated regional markets, the BBM’s upgraded and commercialised the country’s agricultural sector and provided mechanism for implementing state agricultural policy.

as stated above, benefits are not derived as a direct result of commodity exchange establishment. the exchange mechanism requires complex regulation. the role of the state here is twofold: an oversight role (eradicating malpractice