12.19.2013

Interactive Data Adds Commodity Data

12.19.2013
Terry Flanagan

Interactive Data has added new content to FutureSource, its energy and commodities market data management and analytics platform, including data from inter-dealer brokers GFI and ICAP.

Interactive Data said in a statement that it had broadened content within FutureSource to include GFI and ICAP content covering the global physical, swaps and options markets for the crude oil, natural gas, power and emissions markets;  Informa Agra global cash market grain data and OPIS Racks prices for the wholesale gasoline, diesel, jet fuel and ethanol markets in North America.

Tom Mallon, global director of energy and commodities at Interactive Data, told Markets Media that FutureSource clients had been asking for more data that was not from exchanges.

“Commodity and energy markets are still volatile as they are physical in nature and so are affected by disruptions in supply and geopolitical events,” Malloy added.

Investment banks’ commodities businesses could be curtailed due to an ongoing review by the Federal Reserve of the role of Wall Street’s role in physical commodities markets and JP Morgan said in July that it would sell its physical commodities business.

“We are not that exposed to investment banks as our desktops tend to be used more by clients in the physical commodities industry and used for services that are not offered by the banks,” Malloy said. “We are investing in FutureSource very aggressively and 2014 will be a big year as we add functionality, data visualisation and analytics.”

However Barclays said in a  report this week that total global commodity assets under management fell to $332bn in November from $340bn in October. So far this year commodities assets under management have fallen by a record $88bn as investors have withdrawn a net $36.3bn according to the bank.

Commodity exchange-traded funds and products have also experienced net outflows in 10 of the 11 months of 2013, with net outflows reaching $34.7bn at the end of November according to preliminary findings from ETFGI’s November 2013 Global ETF and ETP industry insights report. In contrast in the first 11 months of last year commodity exchange-traded funds and products had net inflows of $22.4bn.

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