Editing Commodity market (section)

=== Over-the-counter (OTC) commodities derivatives ===
[[Over-the-counter (finance)|Over-the-counter]] (OTC) commodities derivatives trading originally involved two parties, without an [[exchange (organized market)|exchange]].  Exchange trading offers greater transparency and regulatory protections. In an OTC trade, the price is not generally made public. OTC commodities derivatives are higher risk but may also lead to higher profits.<ref>Jon Gregory. Counterparty credit risk. {{ISBN|978-0-470-68576-1}}. p. 7.</ref>

Between 2007 and 2010, global physical exports of commodities fell by 2%, while the outstanding value of OTC commodities derivatives declined by two-thirds as investors reduced risk following a five-fold increase in the previous three years.

Money under management more than doubled between 2008 and 2010 to nearly $380 billion. Inflows into the sector totaled over $60 billion in 2010, the second-highest year on record, down from $72 billion the previous year. The bulk of funds went into precious metals and energy products. The growth in prices of many commodities in 2010 contributed to the increase in the value of commodities funds under management.<ref>[http://www.thecityuk.com/assets/Uploads/Commodities-Trading-2011.pdf Commodities Trading report] ([https://web.archive.org/web/20151107060517/http://www.thecityuk.com/assets/Uploads/Commodities-Trading-2011.pdf archive])</ref>