Opinion: transparency is the commodity sector's cheapest asset
Disclosure costs less than the discount that opacity attracts from counterparties and lenders.
By Sofia LindqvistPublished
Physical commodity trading has always operated with less disclosure than listed markets. That is not, in itself, a scandal — but it is increasingly expensive.
Lenders and counterparties price uncertainty. Firms that publish audited accounts, name their auditors and explain their risk framework consistently secure better terms than firms that do not.
The argument for transparency here is not moral. It is commercial.
Sofia Lindqvist — Commodities Analyst. Sofia writes data-led analysis on commodity flows, brokerage structures and counterparty risk.