Open AccessExamining market concentration levels of available global financial commodity products
Author(s) -
Subhakara Valluri
Publication year - 2020
Publication title -
research papers in economics and finance
Language(s) - English
Resource type - Journals
ISSN - 2543-6430
DOI - 10.18559/ref.2020.2.5
Subject(s) - commodity , index (typography) , market concentration , herfindahl index , commodity market , business , product (mathematics) , financial market , finance , commerce , industrial organization , market structure , marketing , geometry , mathematics , world wide web , computer science
The primary objective of this study is to find disparities in the commodity product offerings in various financial markets across the world along with their market concentration levels. Identifying the product gaps in commodity-based financial products offered by the worldwide financial exchanges can assist the decision-makers to fill the existing gaps and strategi-cally attain the worldwide competitive market of commodity exchanges for all nations. The Herfindahl-Hirschman Index, HHI, is used to measure market concentration grouped by geographical regions or exchanges. Our study is conducted for the time period between 2012 and 2016. The disparity analysis indicates a disparity between the various types of com-modity products traded in several exchanges across different geographical regions. Our HHI values reflect a high level of commodity market volume concentration in region-wise analysis and a moderate level of market volume concentration in the exchange-wise analysis.