NRGO - Why Physical Delivery Is The Gold Standard For Energy Markets

• Physically delivered contracts like WTI crude oil provide consistency between the value of financial instruments and their underlying commodity.
• The roots of physically delivered commodity futures go back to the 17th century Dojima Rice Exchange in Osaka, Japan.
• Physically delivered commodity contracts also offer benefits in terms of their convergence with the physical market and their potential to continue reflecting the same fundamentals over years and decades.
• A well-designed delivery process ensures that derivatives converge with the physical markets upon which they are based.

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