Going electronic

Surging commodity prices during the past year have attracted a new wave of investors to the markets. Accustomed to electronic trading in other asset classes, these investors are demanding similar functionality for commodities trading. Clive Davidson reports

The volatility of commodities prices in recent years has drawn a growing number of participants into the markets. Many of these players - among them a sizeable number of hedge funds and proprietary traders - are familiar with more mature markets that boast electronic trading and efficient processing of deals, and they are looking for the same functionality in the energy, metals and other markets.

However, commodities - and particularly energy - have evolved differently from other markets