Two thirds believe benchmarks open to manipulation.
A credible system for agreeing benchmark pricing is fundamental to the proper functioning of markets and the avoidance of price manipulation. Although the current system is not broken, there is broad industry consensus that it can be improved, according to the results of research just published by Clyde & Co. 170 respondents from across the commodities sector responded to a Clyde & Co survey conducted in conjunction with industry magazine Commodities Now during October and November 2014. Only one fifth felt benchmark prices were "entirely fit for purpose". Less than two thirds were "somewhat satisfied" that the current system of benchmark pricing works "adequately well" and 15% believed benchmarks were "substantially flawed." (click here to view the full report)
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