CoT reports were first produced as far back as 1924, and went monthly in the 1960s. The move was proclaimed as “another step forward in the policy of providing the public with current and basic data on futures market operations”.
Over 50 years on, and it’s a fair question to ask whether these reports still carry the same merit, or whether financial markets have passed them by.
The reliance upon them as sources of information, and the esteem in which they are held, seems to emanate almost solely from historical practice. It is time to assess whether market participants can continue to believe they are well served by them.
Financial markets have evolved considerably and, we would argue, beyond this methodology.
Speed of delivery
Even if the methodology were valid, the speed of delivery is positively archaic. Markets now trade at the speed of nanoseconds, which means that a weekly...