Economic uncertainties have had a significant impact on the commodities market, which is usually debt-financed. The financing has been dependent on the expectation of on-going income streams, that relied on the stability of the prices in the commodity exchange.
Unfortunately, many traders have struggled to meet their revenue stream target. There has also been a dip in demand from emerging markets, like China and India. The possibility of geopolitical instability in Iran has dimmed hopes of taking advantage of a new market in the Middle East. While the prices of oil have also dipped.
Also, there are fears of an economic recession due to the coronavirus pandemic. All these unexpected variables will most likely create more stringent enforcement of regulations. As a result, suppliers, consumers, and businesses are increasingly seeking out commodities legal services.
An unstable market forces the traders and suppliers to respond to violations of regulations. Indeed, uncertainties are expected in any business endeavor. But when prices fluctuate and the market panics, entrepreneurs are compelled to respond when it starts touching their key assets.
In an unstable market, entrepreneurs often respond in several ways. The circumstances may compel the suppliers to pay a closer look at the contract to exploit technicalities that will allow an exit. Others may seek a commodities attorney in anticipation of legal moves by the other parties.
Consumers and retailers are sometimes affected by the spikes in securities litigation. As prices go down, suppliers are forced to chase debts. Issues such as repayment, delays in shipping, quality, and quantity, are some of the disputes that can affect any party in the supply chain.
CFTC violations are another area that have led to a demand in commodities litigation services. The popularity of digital platforms has ushered in new challenges for the Commodities Futures Trading Commission.
The commission has in the last few years, bolstered its resolve to pursue securities violations. Many traders seeking commodities legal services have cases on fraudulent misrepresentation or deceptive practices.
The CFTC has also shown eagerness to pursue cases in other jurisdictions. The nature of online trading forces them to extend their enforcement arm to countries where ill-gotten gains may be hidden. The commission is also turning its attention to misrepresentation of identity and physical location, which facilitates fraud in the digital space.
Mediation and Litigation
Even though the unstable market can compel traders to seek commodities and securities litigation, it is often a demanding process. First, when one contract is affected, chances are it will cause a domino effect on other contracts. Secondly, it can take up resources in terms of money and time just when the business needs to be on its feet.
As a result, signatories to a contract may opt for mediation before they can take the case further. They can work to find a middle ground for the mutual gain of both parties. Working with a commodities attorney can save time and resources.
Mediation is often the most viable option when you want to resolve legal trade issues amicably. Before you proceed with the case, consider consulting commodities legal services, so that you can chart the best way forward.