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Would you list some of those reasons, instead of just making the bare assertion?



* Higher liquidity, lower slippage

* Different regulatory capital requirements

* Some commodities don't have cash settlement

* Sometimes a CSC doesn't count (as much) from a regulatory/insurance perspective if you're hedging a position in a commodities basket or whatever

I'm sure there are more - I don't work in commodities.


These futures contracts are for delivery at a specific location. What if you just dont want a million barrels 2000 miles away? Cash settled seems a lot more flexible for lots of industrial use.




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