Artem I. Nikolaev The Relationship of Institutional and Structural Parameters with the Development of Exchange Trading in Commodity Markets

DOI: 10.38050/2078-3809-2026-18-3-71-86

Abstract

The development of commodity exchange trading represents a strategic objective of Russia's antitrust policy. However, its success largely depends on institutional and structural factors. This paper applies transaction cost economics to analyze constraints on and opportunities for commodity exchange trading in the Russian markets for crude oil, petroleum products, and natural gas. The findings reveal that the petroleum products market – characterized by low asset specificity and a high degree of participant fragmentation – has seen the successful development of a liquid exchange-traded segment, whereas in the oil and gas markets, marked by high concentration, regulatory oversight, and vertical integration, such a segment has yet to emerge. Nevertheless, as a hybrid coordination mechanism, a commodities exchange has the potential to gradually transform both the incentives of market participants and the structure of the market itself.

Keywords: commodities exchange, transaction costs, asset specificity, vertical integration, market concentration, antitrust policy.

JEL: D23, D4, L1, L4, Q4.

For citation: Nikolaev, A.I. (2026) The Relationship of Institutional and Structural Parameters with the Development of Exchange Trading in Commodity Markets. Scientific Research of Faculty of Economics. Electronic Journal, vol. 18, no. 3, pp. 71-86. DOI: 10.38050/2078-3809-2026-18-3-71-86.

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