Regression results show that there is a positive relationship between the trading volume of large hedge funds and CTAs and market volatility. This study uses the newly available data from the CFTC to investigate the market impact of futures trading by large hedge funds and CTAs. By applying the multiple linear regression model, we found that the net position changes held by Managed Money (hedge funds, etc.) have a significant positive influence on the WTI price while the net position changes held by Non-Reportables (small traders) have a significant negative influence. Producer/Merchant/Processor/User, had a net short position trend. Swap Dealers and Managed Money, accounted for a significant part of the market and had a net long position trend throughout the sample period, whereas actual users, i.e. Using this data, we highlighted the differences between trading behaviors of speculator and actual user. The CFTC also released the previous 3 years detailed data which include the period of global financial crisis and following oil price bubble. the past they were separated into only “Commercial” and “Non-Commercial” categories. In the report, reportable traders were separated into four categories, whereas in. Commodity Futures Trading Commission (CFTC) began publishing a Disaggregated Commitments of Traders report for the sake of increasing the transparency of market participant’s trading behavior. In this paper, we analyzed the relationship between WTI oil price and speculative investment.
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