Creating a market for price swaps: Case study of an innovative risk management instrument in the Belgian-Dutch pear market

While thebenefits ofusing futures tomanage price risk are widely recognised, only certain groups offarmers have suitable futures attheir disposal. This paper discusses aninnovative instrument, developed inthe Belgian-Dutch pear market, thatprovides analternative tofutures markets bycreating a market forprice swaps. Thus, theinstrument provides some benefits ofmarket-traded derivatives (like futures) while remaining a relatively simple instrument, which requires fewer market transactions. Thepaper describes key properties ofthe swap contracts and theplatform used totrade them. Inaddition, it co... Mehr ...