ABSTRACT
This chapter examines a Japanese case of abnormal speculation which happened in the market and considers possibilities for correcting the situation. It also examines the functions of markets in New York, London. In the case of distorted speculation, when the market is distorted by a particular participant's significant share of the trading volume, it might be reasonable to regulate the speculative capital inflow of the particular participants and to promote the outflow of them to weaken their shares. The effective measure against excessive speculation and against distorted speculation which come to the front after the "latent period" might be "incidental margin". There were symptoms of excessive speculation phenomena in the international economy. The upward price movement during the period should be interpreted as a feature of excessive speculation. The international natural rubber market was diagnosed as in the early stage of excessive speculation.
