Financial players on the commodity derivatives markets, such as hedge funds from commodity traders, are not transparent. The (food) commodity markets that speculate on prices are highly linked with the rest of the financial industry. The resulting risks constitute a challenge for regulators in maintaining the integrity and stability of the financial markets.

Civil society has been emphasising the need to protect poor consumers in food importing developing countries from price uncertainty and price hikes. This briefing paper explains how new trends, new risks and the complexity of the food commodity derivatives business need to be taken into account to avoid loopholes during the current regulatory process.