Chaotic Trading in Energy, Metals and Food Spills Into Real World

Shankar Narayanan, head of research at Quantitative Brokers LLC, which uses algorithms to trade on behalf of hedge funds, banks and asset managers, said that traders wary of tipping their hands or making big ripples in illiquid markets are slicing up large trades into smaller transactions, which is making it difficult to ascertain prices. Wider gaps between offers to buy and sell have meant more volatility across nearly every commodity, Mr. Narayan said.