Authors : P. Tenderere and V. Gumbo
Abstract: This study, reviews futures contracts on a contract design approach basis. Drawing from the literature and using indicative empirics, it assesses the futures contract specifications that would enable success once the recently re-launched commodity exchange of Zimbabwe (Comez) begins trading. The study highlights a primary point that while the commodity characteristics may be suitable, coupled with a very strong and supportive economic and policy environment, failure to design appropriate futures contracts may result in poor participation by market participants, thereby rendering the exchange untenable.
P. Tenderere and V. Gumbo, 2013. An Assessment of Futures Contract Specifications for the Re-Launched Commodity Exchange of Zimbabwe (Comez). Agricultural Journal, 8: 282-288.