Foreword
Summary
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2
3
4
5
6
A1
Acknowledgements
Figures and tables
Economic value of English law | Oxera

A1.2: Commodity trading

Published: October 5th 2021
Download the Report Executive Summary Funders
2.1: Introduction 2.2: Economic value is created by ‘gains from trade’—realised through transactions 2.3: The law underpins growth in the volume of transactions (and therefore the generation of economic value) 2.4: Considering the law as infrastructure on which transactions take place
3.1: Introduction 3.2: The economic value created through the UK legal services ecosystem 3.3: The economic value created for the UK as a whole -3.3.1: English law as a global market standard -3.3.2: Agglomeration effects -3.3.3: Reduced transaction costs for UK businesses trading internationally 3.4: The choice of law and legal services for internationally mobile transactions
4.1: Introduction 4.2: English law provides significant value to the UK economy -4.2.1: Maritime sector -4.2.2: Commodity trading -4.2.3: ISDA swaps and derivatives -4.2.4: International insurance contracts -4.2.5: The value of English law to the UK economy is significant 4.3: Risks and opportunities 4.4: Future opportunities for the use of English law represent significant potential value to the UK
5.1: Introduction 5.2: English law suffers from a type of ‘market failure’ 5.3: Solutions to the free-rider problem: coordination across private and public parties 5.4: How to manage the ‘provision’ of English law
Experts Funders
Chapter A1

A1.2: Commodity trading

Commodities are undifferentiated goods that are often used as inputs in the production of other goods and services. Examples of commodities include agricultural products, metals, and crude and refined oil.

The sale and purchase of commodities is regularly carried out on commodities exchanges—a market in which multiple buyers and sellers trade commodities using commodity-linked financial products that are governed by standard form contracts.[1]United Nations (2009), ‘Overview of the world’s commodity exchanges – 2007’. This allows producers and consumers of commodities from all around the world to trade in centralised marketplaces with standardised terms using standard form contracts offered by exchanges and trade associations.[2]Ibid.

The trading of commodities therefore involves internationally mobile transactions as commodities can be traded on exchanges worldwide.

References