OpenMarkets

Today’s Number: The Need for Market Commentary

Jun 21, 2012 || John Conolly || No Comments

This year has seen its share of big economic news affecting every aspect of the market. From the continuing Eurozone crisis to a slowdown in China and an unseasonably warm and early planting season in the United States, there’s been plenty for market participants to consider. In that way, it’s not too much different than any other year.

What is different is where many participants are getting their daily information on market activity. In May, the Market Commentary section of cmegroup.com generated over 400,000 page views.  And we’ve seen another 30 percent increase in traffic so far in June. CME Group launched Market Commentary in early 2009 to offer customers insight into the factors driving prices and to offer up-to-the-minute analysis of market information. Initially, the commentary focused on an analysis of the agricultural markets by a few well known experts. Today, the program aggregates content from over 40 analysts, industry associations and media companies from around the globe, including Dow Jones Newswires, Thomson Reuters, DTN , Pro Farmer and the U.S. Energy Information Administration (EIA).   Last week alone, people from more than 125 countries accessed analysis on our pages.

We’re excited that those involved in the markets are reading the Market Commentary, but it also signals a change in how market participants collect and share information, as well as the insatiable appetite for quality content in today’s marketplace. In the days when all trading happened on the floor, there was a central location for information. Every bit of market information available went through the pits, and was factored into prices. With the growth of electronic trading and digital media, that changed. The amount of information available has increased, but quality information has in some ways become more difficult to access.  There’s increased value in providing customers with a single location where they can access some of the best and brightest voices in our industry.

As markets become more global, they also become more interconnected. Global politics and macro-economic factors have an immediate impact on why and how much markets move. At one time, a potential Greek default would not have had much of an impact on the price of grain in Chicago or the price of oil in New York, but the situation today is obviously quite different.

That’s why timely, reliable information from trusted sources is as important as ever whether you’re trading wheat options or Euro futures. And venues that facilitate sharing of information between market participants are as important as ever.

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