Financial History 25th Anniversary Special Edition (104, Fall 2012) | Page 32

To be sure, the transformation in commodity markets has not been without some resistance. “There is always the fear factor,” says Baker. “At first brokers were afraid that indexing of futures trading and the rise of electronic transactions would reduce or eliminate their business. In the event, just the opposite has happened. Volumes and dollar values on all the exchanges, physical and electronic, is 15 to 30 times what it was before.” He stresses that is not simply a function of computing power. “In every market there is a very close link between transparency and concentration of volume and growth. Where there is faster and wi \