Bangor Academic’s Research Quoted in Position Limits Article

A working paper by a Bangor Business School academic has been quoted in a Computerworld article on position limits.

Research undertaken by Professor Shahid Ebrahim, Professor of Islamic Banking and Finance at Bangor Business School, was quoted in an article reporting on the Commodity Futures Trading Commission’s recent 3-2 decision to impose a position limits regime in the commodity futures and swaps markets.

Published on 2nd November 2011, the Computerworld article references the results of modelling undertaken by Professor Ebrahim in his February 2011 working paper ‘Can Position Limits Restrain "Rogue" Trading?’, which demonstrated that ‘the “binding constraints” imposed by position limits have the “unintentional effect” of a “degradation of the equilibria and augmenting power of the speculator and other agents”’ and that ‘instead of curtailing price swings, (position limits) could exacerbate them’. 

To read the Computerworld article in full, click here. The working paper ‘Can Position Limits Restrain “Rogue” Trading?” can be downloaded here.

Publication date: 30 November 2011