Commodity Derivatives

Commodity derivatives are financial instruments whose value is based on underlying commodities, such as oil, gas, metals, agricultural products and minerals. Other assets such as emissions trading credits, freight rates and even the weather can also underlie commodity derivatives. Although the market has been around for centuries, commodity derivatives remain a vital and increasingly sophisticated product today. Airlines continue to hedge themselves against volatility in fuel prices, mining corporations against declines in metal values and power companies against rises in the price of natural gas. Although the popularity of commodity derivatives has grown spectacularly in recent years, little has been written about the array of products or their documentation. "Commodity Derivatives: Documenting and Understanding Commodity Derivative Products" examines the full spectrum of commodity derivative transactions. This accessible title explains each type of transaction, together with the documentation involved. In particular, this book analyses and guides the reader through the full suite of over-the-counter, exchange-traded and structured commodity derivative documentation, and provides a detailed guide to International Swaps and Derivatives Association and other leading documentation platforms. This book further contains detailed analysis of the regulatory and tax issues affecting commodity derivative products in the United Kingdom and United States. This major work is edited by Edmund Parker, head of derivatives at Mayer Brown, London (author of "Credit Derivatives: Documenting and Understanding Credit Derivative Products" and editor of "Equity Derivatives: Documenting and Understanding Equity Derivative Products"), and Marcin Perzanowski, an associate at Mayer Brown, London.