Navigating the trading seas: exploring the significance of benchmarks

In an exclusive interview with Energy Connects, Nour Eltigani spoke to Joe Raia, Chief Commercial Officer at Abaxx Futures Exchange about navigating the intricate world of commodities and the benchmarks that underpin the markets. Among these benchmarks, two primary types stand out: physically settled and financially settled. Joe highlighted that while both serve as crucial metrics for traders and investors, they operate on fundamentally different principles. He explained that physically settled benchmarks play a pivotal role in ensuring the integrity and reliability of market prices, whereas financially settled benchmarks offer liquidity and flexibility but may introduce certain risks.