The liquidity makers

Hedge funds are bringing liquidity to the structured end of commodity markets,and some – such as Citadel – are even trading in physical energyproducts. This can only make energy markets more efficient, finds James Ockenden

Hedge funds are not new to energy markets. According to Sharon Brown-Hruska,commissioner with the Commodity Futures Trading Commission (CTFC), of the top100 hedge funds, 68 are registered as commodity pool operators with the CFTC,and she says the regulatory body has had a long-standing interaction with thesefirms. “These funds are not new on the scene in our markets, although interesthas grown,” she says. “It certainly does not surprise me, as an academicfinance professor, that investors

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