Commodities Definitions

Commodity Pool

An investment trust, syndicate, or similar form of enterprise operated for the purpose of trading commodity futures or option contracts. Typically thought of as an enterprise engaged in the business of investing the collective or “pooled” funds of multiple participants in trading commodity futur

Pegged Price

The price at which a commodity has been fixed by agreement.

Commodity Option

An option on a commodity or a futures contract.

Commodity Money

Refers to money based on a commodity such as gold. See also: Fiat System, Fiat Money

Commodity-Linked Bond

A bond in which payment to the investor is dependent to a certain extent on the price level of a commodity, such as crude oil, gold, or silver, at maturity.

Commodity Exchange Commission

A commission consisting of the Secretary of Agriculture, Secretary of Commerce, and the Attorney General, responsible for administering the Commodity Exchange Act prior to 1975.

Commodity Exchange Authority

A regulatory agency of the US Department of Agriculture established to administer the Commodity Exchange Act prior to 1975. The Commodity Exchange Authority was the predecessor of the Commodity Futures Trading Commission.

Commodity Exchange Act

The Commodity Exchange Act, 7 U.S.C. § 1, et seq., provides for the federal regulation of commodity futures and options trading. See also: Commodity Futures Modernization Act.

Par

(1) Refers to the standard delivery point(s) and/or quality of a commodity that is deliverable on a futures contract at contract price. Serves as a benchmark upon which to base discounts or premiums for varying quality and delivery locations; (2) in bond markets, an index

Commodity Currencies

Refers to to currencies that are closely tied to the value of commodities such as gold and oil. The Australian Dollar, Canadian Dollar, New Zealand Dollar and the Swiss Franc all have a strong positive correlation with commodities and are sometimes referred to as commodity currencies.