Financial Times FT.com

Rush to put private commodities contracts on exchanges

By Javier Blas and Jeremy Grant in London

Published: October 12 2008 23:34 | Last updated: October 12 2008 23:34

Commodities traders are rushing their private bilateral contracts into exchanges and clearing houses as they race to reduce their counterparty risk amid a deepening financial crisis.

The transfer of the opaque over-the-counter deals comes as observers warn that commodities, where trading has ballooned in the past five years, could be the next market hit by counterparty failures.

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