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EU Probing ‘Anticompetitive Behavior in Precious Metals Spot Trading’

Posted on 26 August 2015 by VRS  |  Email |Print

The European Union’s competition watchdog is investigating alleged “anticompetitive behavior in precious metals spot trading,” a spokesman said. The spokesman for the European Commission, Ricardo Cardoso, declined to give more details on the probe.
The Wall Street Journal reported in February that U.S. officials are probing at least 10 major banks for possible rigging of the precious metals market. The U.K. Financial Conduct Authority and German financial watchdog BaFin had previously reviewed the precious metals benchmarks, but closed their inquiries without finding evidence of wrongdoing, people familiar with those probes said at the time………………………………………..Full Article: Source

Commodity trading norms cleared by Sebi

Posted on 25 August 2015 by VRS  |  Email |Print

Setting September 28 as the date for merger of Forward Markets Commission (FMC) with itself, Sebi on Monday announced new norms for commodities derivatives market under which exchanges and brokers in this segment will need to comply with rules applicable to their stock market peers.
The new regulations will also come into force on September 28, the date from which Sebi would begin regulating the commodity derivatives market as a unified regulator. These norms, approved by Sebi’s board here on Monday, will enable functioning of the commodities derivatives market and its brokers under Sebi norms and integration of commodities derivatives and securities trading in an orderly manner………………………………………..Full Article: Source

Sebi to discuss norms for commodities derivatives market

Posted on 24 August 2015 by VRS  |  Email |Print

Ready to merge commodity trading regulator FMC with itself, capital markets watchdog Sebi will discuss tomorrow a new set of norms and finer details for its regulation of commodities derivatives market. Sebi expects to complete the merger next month while its Chairman U K Sinha had recently cautioned small investors against coming for quick gains through speculation in the commodities market, saying it is “risky” and requires a lot of technical expertise.
At a board meeting scheduled tomorrow, the Securities and Exchange Board of India (Sebi) would discuss the progress on the merger process, regulatory changes needed in the commodity market and finalised the regulations, sources said………………………………………..Full Article: Source

Routing commodity trades through brokers may push up costs for hedgers

Posted on 21 August 2015 by VRS  |  Email |Print

Capital markets regulator SEBI has directed commodity broking firms to register themselves with it and abide by all norms for market intermediaries, including ‘fit and proper’ criteria once the Forward Markets Commission-SEBI merger becomes effective from September 28.
Once the registration is completed, SEBI may route all the commodity trades through the brokers as it is currently being done in the stock market. Liquidity to dip: This may pose a major challenge for physical market participants, such as large corporates and bullion traders who are registered currently as clearing members with the exchanges………………………………………..Full Article: Source

NGOs: Not enough done to regulate commodities

Posted on 21 August 2015 by VRS  |  Email |Print

Two Swiss non-governmental organisations have accused the government of being “obstinate” in not taking effective action to regulate the commodities sector, after it announced that “real progress” had been made on the issue. The cabinet approved on Wednesday a status report for the implementation of recommendations made in March 2013, to regulate the commodities industry.
It referred to stricter rules that were issued in the area of derivatives trading and anti-money laundering. The government’s interest “to promote transparency with regard to payments made by commodity companies to governments” and its support of the Extractive Industries Transparency Inititative (EITI) were also included………………………………………..Full Article: Source

India: Commodities market to not open to foreign investments for now

Posted on 18 August 2015 by VRS  |  Email |Print

The merger of Forward Markets Commission (FMC) and Securities and Exchange Board of India (Sebi) had triggered hopes that foreign investors would be allowed to participate in the commodities market. However, this may not happen just yet. As per sources the Reserve Bank of India (RBI) has asked Sebi to put a pause on the plan pending an approval from the government.
The investment of foreign portfolio investors (FPIs) in commodity derivatives was given an in-principle nod, as the Finance Bill cleared by the Lok Sabha during the budget session included commodity derivatives in the definition of securities………………………………………..Full Article: Source

Commodities caught in Federal Reserve crossfire

Posted on 18 August 2015 by VRS  |  Email |Print

After it emerged from bankruptcy protection in 2014, Genco Shipping & Trading was the darling of many hedge funds and distressed investors. But with world trade still virtually flat, Genco’s prospects have not improved much. The circumstances of dry bulk carriers are especially bleak.
In the first week of August, meanwhile, US coal producer Alpha Natural Resources filed for bankruptcy protection. The drop in coal prices is now dragging down metals, including aluminium, copper, iron ore and steel, as well as mining and trading firms………………………………………..Full Article: Source

World Gold Council recommends retaining India’s current hallmarking model

Posted on 31 July 2015 by VRS  |  Email |Print

World Gold Council on Thursday recommended that India’s current hallmarking model, built around independent hallmarking and assay centres, should be retained. In addition it recommended six key actions should be taken to improve the efficiency and effectiveness of the current system:
WGC recommended that the governance around the hallmarking process should be strengthened and there should be a customer awareness drive about hallmarking.There is a need to incentive and facilitate targeted expansion of hallmarking centres. It has also suggested to use BIS data to develop a ratings system for jewellers………………………………………..Full Article: Source

Commodity selloff: What it means for Fed rate hike

Posted on 22 July 2015 by VRS  |  Email |Print

A broad selloff in commodities and dollar strength point to disinflationary pressures on the horizon that weaken the argument for a near-term rise in U.S. interest rates, according to some analysts. This week has seen gold prices tumble to five-year lows and U.S. oil prices dip below $50 a barrel for the first time since April, with prices stabilizing a little on Tuesday.
“Given that weak commodity prices are likely to prompt a ripple out disinflationary effect it is hard to see how the Fed (U.S. Federal Reserve) would even consider hiking rates against such a weak backdrop, something markets don’t appear to be considering at the moment,” Michael Hewson, chief market analyst at CMC Markets UK, said in a note on Tuesday………………………………………..Full Article: Source

India further cuts gold, silver import tariff value

Posted on 17 July 2015 by VRS  |  Email |Print

Government today further slashed the import tariff value of gold to $376 per 10 grams and of silver to $498 per kg due to weak global prices. For last fortnight, the tariff value of gold was fixed at $382 per 10 grams and silver at $516 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices. The decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement………………………………………..Full Article: Source

India: Regulating commodities: Panel advises Sebi to focus on crisis avoidance

Posted on 15 July 2015 by VRS  |  Email |Print

An experts panel has advised the markets regulator, the Securities and Exchange Board of India (Sebi), to first focus on understanding commodities markets and crisis avoidance before taking up developmental issues.
The recommendations were made in light of the government’s decision to merge the commodities market regulator, the Forward Markets Commission (FMC), with Sebi. The merger is expected to be effective from October………………………………………..Full Article: Source

Financial regulators target high-profile cases

Posted on 15 June 2015 by VRS  |  Email |Print

Financial watchdogs across three continents are targeting fewer, high-profile cases to levy ever-larger fines, despite growing recognition that even $1bn penalties do not work by themselves to prevent wrongdoing. Regulators in Hong Kong, the UK and the US increased the average size of their fines by at least 10 per cent from 2013 to 2014. The UK’s Financial Conduct Authority’s average penalty soared 272 per cent, new research shows.
Over a five-year period the increases were more stark: the US Commodity Futures Trading Commission’s average fines rose 772 per cent, while the FCA’s jumped 1,815 per cent………………………………………..Full Article: Source

New EU rules may hasten commodity liquidity flight

Posted on 09 June 2015 by VRS  |  Email |Print

Planned EU regulations on position limits in commodities are fuelling intense debate about whether the move could prompt traders to flee to Asian markets, further hurting European liquidity and potentially hurting economic growth. Restrictions on banks and capital requirements has already subdued enthusiasm for commodity trading.
The new rules aimed at stopping abuses of pricing power on commodity markets will encompass position limits, or curbs on how much one trading house can hold of a specific commodity, possibly on thousands of futures contracts………………………………………..Full Article: Source

New EU rules may hasten commodity liquidity flight

Posted on 08 June 2015 by VRS  |  Email |Print

Planned EU regulations on position limits in commodities are fuelling intense debate about whether the move could prompt traders to flee to Asian markets, further hurting European liquidity and potentially hurting economic growth.
Restrictions on banks and capital requirements has already subdued enthusiasm for commodity trading. The new rules aimed at stopping abuses of pricing power on commodity markets will encompass position limits, or curbs on how much one trading house can hold of a specific commodity, possibly on thousands of futures contracts………………………………………..Full Article: Source

Should governments intervene in energy markets?

Posted on 05 June 2015 by VRS  |  Email |Print

Climate change and public sector debt are two of the biggest issues for modern governments and they come together in the vexed question of how far the state should intervene in energy markets. According to the International Monetary Fund, energy subsidies accounted for 8% of total global government spending in 2011 ($1.9tn, or £1.2tn), due mainly to the political appeal of keeping energy prices down.
In the UK, energy remains a contentious issue. Despite sharp falls in wholesale prices for coal and gas over the past year, household bills are as high as ever – prompting regulator Ofgem to refer the retail energy market to the Competition and Markets Authority………………………………………..Full Article: Source

Sebi not keen on forming separate division to regulate commodities

Posted on 05 June 2015 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) is not in favour of creating a separate department to regulate the commodities market after commodity market regulator Forward Markets Commission (FMC) is merged with the capital market regulator. According to two persons directly involved in the discussions, the proposed merger is likely to be completed by September and the departments of Sebi that monitor brokers and exchanges would be utilized to oversee commodity brokerages and bourses, respectively.
“The view within Sebi is that a separate division will only lead to duplicity of work related to brokerages and exchanges. The better approach would be to seamlessly integrate these commodity market entities with their securities segment counterparts to best utilize the regulatory resources,” said a person on condition of anonymity as he is not authorized to speak to the media………………………………………..Full Article: Source

India: Rajan moots minimum support price across commodities

Posted on 03 June 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) Governor Raghuram Rajan, on Tuesday, said that minimum support price (MSP) should be available to across commodities. “In India, few commodities are getting support price……. States produce more commodities which are having MSP and less of such commodities which are not having MSP…..this creates disparity,” said Dr. Rajan while addressing a press conference here announcing the second bi-monthly monetary policy.
“Inflation control will also be helped by limiting the increase in agricultural support prices,” he added. Furthermore, he said, monetary easing could only create the enabling conditions for a fuller government policy thrust that hinged around a step up in public investment in several areas that could also crowd in private investment………………………………………..Full Article: Source

India: RBI asks banks to create awareness on hedging agri-commodities

Posted on 29 May 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) on Thursday advised banks to create awareness among their borrowers for hedging agricultural commodity price risk. “Banks should encourage hedging by the agri-borrowers by creating awareness amongst them regarding the utility and benefits of hedging through agri-commodity derivatives,” RBI said in a notification to all banks. “This would help to develop strong risk management capabilities to manage agri-commodity price risk,” it added.
At the same time, said RBI, “banks must keep the sophistication, understanding, scale of operation and requirements of their agri-borrowers in mind while advising on the availability and use of these instruments.” To begin with, banks were asked to encourage large agricultural borrowers such as agricultural commodity processors, traders, millers and aggregators to hedge their commodity price risk…………………………………Full Article: Source

Chinese gov’t allows commodity trading

Posted on 15 May 2015 by VRS  |  Email |Print

China has more than tripled the number of central government-owned firms allowed to trade commodities derivatives overseas without regulator approval. The move will give China more clout in global markets for metals, energy and agricultural products.
One hundred more large government-backed Chinese companies will be permitted to trade in international futures, swaps and options markets, according to three sources with direct knowledge of the changes. It marks the biggest expansion of the list in nearly 10 years…………………………………..Full Article: Source

OPEC Should Consider Return To Oil Quotas-Delegate

Posted on 20 April 2015 by VRS  |  Email |Print

A proposal to reintroduce quotas would spark a fierce debate in OPEC as national prestige and market share are at stake. OPEC should consider re-introducing individual output quotas, shuffled quietly to one side in 2008, to prevent oversupply hitting prices should Iran increase its oil exports following a deal over its nuclear work, an OPEC delegate said.
A proposal to reintroduce quotas would spark a fierce debate in the Organization of the Petroleum Exporting Countries as national prestige and market share are at stake. After refusing to cut output last year, OPEC is pumping much more than its overall output target of 30 million barrels per day (bpd) because of record Saudi Arabian output, higher Iraqi exports and a partial return of Libyan crude……………………………………Full Article: Source

F.M.I. offers sustainability guide for commodities

Posted on 15 April 2015 by VRS  |  Email |Print

The Food Marketing Institute has launched its “Sustainable Sourcing Guide for High-impact Commodities,” which is designed for retailers. The guide focuses on such commodities as sugar cane, cocoa, paper/pulp, coffee, soy, palm oil and beef.
The guide gives an overview on each commodity. It includes environmental impacts for each commodity as well as sustainable sourcing questions and product certification opportunities.“For food retailers, sustainable sourcing is critical to long-term success as availability concerns increase,” said Jeanne von Zastrow, senior director for sustainability for Arlington-based F.M.I………………………………………..Full Article: Source

Commodity giants’ Singapore trading hubs under fire in tax probes

Posted on 13 April 2015 by VRS  |  Email |Print

The Singapore trading hubs of the world’s largest commodity companies are coming under scrutiny from the governments of some resource-producing countries who say they suspect they are using units in the Southeast Asian financial centre to avoid tax.
Some of the world’s largest oil, mining and soft commodity companies book billions of dollars of revenue in the tiny island state every year, where tax rates can be very low, which is perfectly legal unless they deliberately underprice group transactions so as to shift profit there from units in other countries………………………………………..Full Article: Source

India: Commodity trade needs strong regulator

Posted on 13 April 2015 by VRS  |  Email |Print

The new regulator – SEBI or Warehouse Development and Regulatory Authority – should understand the aspiration of the market: National Bulk Handling Corpn chief. The merger of Forward Markets Commission and SEBI should throw up better business opportunity for commodity exchange and brighten the prospects of warehouses. Post-National Spot Exchange crisis, regulations on warehouses have been tightened and Sebi is expected to play a crucial role.
Anil Choudhary, Managing Director & CEO, National Bulk Handling Corporation: “We are regulated by the Forward Markets Commission and Warehouse Development and Regulatory Authority. SEBI should not look at commodity trading as just a financial asset class. It can play a far bigger and effective role. Futures exchange can give price signals to farmers six months in advance and help them decide what to grow. The futures market needs participation of financial sector, foreign institutional investors and mutual funds.”……………………………………….Full Article: Source

Government forms panel for Sebi-FMC merger

Posted on 08 April 2015 by VRS  |  Email |Print

The government has set up a committee to oversee the merger between commodities market regulator Forwards Market Commission (FMC) and the Securities and Exchange Board of India (Sebi).
The committee is headed by Ajay Tyagi, additional secretary, finance ministry and has representatives from both the regulators and the ministry. It met last month for the first time to sort out various issues involved in the merger process………………………………………..Full Article: Source

Commodities traders’ alarm over Europe’s stricter regulations

Posted on 01 April 2015 by VRS  |  Email |Print

If you thought US plans to cap speculative activity in commodities were broad, then take a glance at what’s unfolding on the other side of the Atlantic.Policy makers in Europe want to place position limits, or caps, on the number of contracts speculators may control, on around 1,900 commodity derivatives (and securities priced off commodities), according to calculations by the UK’s Financial Conduct Authority.
To put that figure in perspective, the US Commodity Futures Trading Commission position limit plan extends to just 28 contracts………………………………………..Full Article: Source

Commodity Prices Receive Boost From Fed Uncertainty

Posted on 31 March 2015 by VRS  |  Email |Print

A pause in the dollar’s ascent has bolstered many commodities markets, lifting prices on raw materials ranging from copper to orange juice. An eight-month rally in the greenback stalled earlier this month after the Federal Reserve signaled it wasn’t in any hurry to raise interest rates.
Many short-term commodity traders read that as a buy signal. Their logic: A weaker dollar makes dollar-denominated commodities less expensive for consumers outside the U.S. A sustained fall in the dollar could stoke global demand, keeping prices buoyant………………………………………..Full Article: Source

Merger Process With Commodity Regulator to be Smooth: Sebi

Posted on 23 March 2015 by VRS  |  Email |Print

Securities and Exchange Board of India (Sebi) on Sunday said the action plan for proposed merger of Forward Markets Commission (FMC) with itself is under works and expressed hope that the process would be “smooth”.
The Finance Ministry along with capital market watchdog Sebi and commodity market regulator FMC are in dialogue for the merger process, Sebi Chairman U K Sinha said here. “We discussed the proposed merger of FMC with Sebi (Securities and Exchange Board of India) and the plan of action in this regard,” he said after its board meeting, which was addressed by Finance Minister Arun Jaitley………………………………………..Full Article: Source

India’s failure to cut duty hurts gold prices

Posted on 04 March 2015 by VRS  |  Email |Print

India’s decision to maintain an import duty on gold surprised investors, dealing a fresh blow to a metal that has been hit hard this year by a strengthening U.S. dollar and a series of policy shifts around the globe. Gold for April delivery, the most actively traded contract, sank $4.90, or 0.4%, to $1,208.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Investors had been hoping India would reduce the duty, likely boosting demand for gold from the world’s largest consumer. The decision adds to broad crosscurrents for gold, which tends to appreciate at times of economic uncertainty but does less well in more placid periods because it offers buyers no periodic payments, or yield……………………………………….Full Article: Source

India: Budget on commodities

Posted on 02 March 2015 by VRS  |  Email |Print

An important proposal that will impact the commodity industry is the plan to merge commodities market regulator Forward Market Commission with capital market watchdog SEBI. Finance Minister Arun Jaitley said “the proposed merger would help streamline the monitoring of commodity futures trading and curb wild speculation.”
This proposal is likely to bring convergence in regulation of various financial markets, such as securities, commodities and currency derivatives. Tracking of related money flows into such markets will also be easier. This will lead to implementing the long pending FCRA amendment bill. For brokers, substantial savings in costs are anticipated as separate set-ups for regulatory compliance may not be required………………………………………..Full Article: Source

India Announces New Gold Schemes: What to Know

Posted on 02 March 2015 by VRS  |  Email |Print

Investors who want to buy gold will soon have a new option. This was among a number of proposals announced by Finance Minister Arun Jaitley in the Budget to reduce India’s import of gold as well as put to work the vast amount of gold deposits held in the country.
The Finance Minister said a Sovereign Gold Bond would be introduced as an alternative to purchasing physical gold. The bond or financial instrument will carry a fixed rate of interest and when investors sell the bond they will get the value of the gold………………………………………..Full Article: Source

US ‘Probes Banks’ Precious Metals Rigging’

Posted on 27 February 2015 by VRS  |  Email |Print

The United States is reportedly probing major banks over possible manipulation of precious metals markets. The investigation centres on prices for gold, silver, platinum and palladium, the Wall Street Journal says.
It is being carried out by the Justice Department with help from Commodity Futures Trading Commission, which regulates raw materials and derivatives, the newspaper said, quoting sources close to the case. The banks targeted are HSBC, Bank of Nova Scotia, Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Societe Generale, Standard Bank and UBS………………………………………..Full Article: Source

Yellen: Fed to Issue Bank Commodity Rules This Year

Posted on 26 February 2015 by VRS  |  Email |Print

Federal Reserve Chairwoman Janet Yellen said Wednesday that the Fed plans to propose new rules this year relating to banks’ activities in physical- commodity markets, such as aluminum and oil.
The Fed has been engaged in “a careful review” of the activities it has permitted, Ms. Yellen told the House Financial Services Committee during the second day of her semiannual monetary policy testimony. “With respect to the concerns they raise about safety and soundness, we are likely to propose new rules during this year,” Ms. Yellen said………………………………………..Full Article: Source

India’s gold imports set to rise as RBI eases curbs ahead of budget

Posted on 20 February 2015 by VRS  |  Email |Print

Gold imports to top consumer India are set to jump in coming months after the Reserve Bank of India (RBI) eased gold import curbs, ahead of an expected cut in import duty in next week’s budget.
The Reserve Bank of India said on Wednesday banks would again be allowed to import gold on a “consignment basis”, under which they act as intermediaries and don’t pay for the stock until a buyer has been found, which is usually quickly. Trading houses will be allowed to bring in gold with no conditions attached………………………………………..Full Article: Source

India: Is Commodities Transaction Tax removal in the offing?

Posted on 12 February 2015 by VRS  |  Email |Print

The Commodity Transaction Tax (CTT) was introduced in the 2013 Union Budget on non-agricultural commodities traded on futures exchanges. This was based on the premise that commodity exchanges have matured; and there is no difference between stock and commodity derivatives trading.
Therefore, the very existence of Securities Transaction Tax (STT) in stock exchanges justified the CTT, as was stated during the time of the tax announcement. Since then, and even before that, several arguments have been put forward on the differences between the commodity and the stock exchanges; but that is immaterial now as the impact of CTT on the commodity futures markets is quite perceptible in the non-agricultural segment………………………………………..Full Article: Source

U.S. regulators should study oil slump -CFTC official

Posted on 27 January 2015 by VRS  |  Email |Print

U.S. futures market regulators should review the sharp drop in crude oil prices to gain a better understanding of the slide as they pursue rules to crack down on speculation in commodities, a top official said on Monday.
The Commodity Futures Trading Commission is considering regulations to rein in speculation in energy, grain and metals markets with new rules on position limits. However, the agency needs more data to justify sweeping changes, Commissioner Christopher Giancarlo told a commodities conference in Miami………………………………………..Full Article: Source

German Regulator Found No Signs of Gold Price Manipulation

Posted on 27 January 2015 by VRS  |  Email |Print

Germany’s financial regulatory authority, known as BaFin, has concluded a probe into allegations of manipulation in the gold market and found no signs of rigging, according to Handelsblatt newspaper.
Examinations regarding the manipulation of currencies are still underway and have shown no systematic manipulation of exchange rates so far, the newspaper reported, citing an interview with Raimund Roeseler, head of Bafin’s banking supervision………………………………………..Full Article: Source

BSEC to formulate ‘commodity exchange’ rules

Posted on 27 January 2015 by VRS  |  Email |Print

The Bangladesh Securities and Exchange Commission (BSEC) has moved forward to formulate rules to open ‘commodity exchange’ in the country for the first time. A committee of BSEC has submitted two reports to the commission in this regard which may help accelerate the process to formulate commodity and exchange rules very soon, officials said.
Experts and private investors urged for formulating rules as soon as possible to launch commodity exchanges in Bangladesh to boost trade of agricultural produces in the country. A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity exchanges across the world trade in agricultural products and other raw materials like wheat, jute, sugar, maize, cotton, oil, metals, etc and contracts based on them………………………………………..Full Article: Source

UK Financial Body Regulating Gold, Silver Benchmarks

Posted on 23 December 2014 by VRS  |  Email |Print

Britain’s financial regulatory body is moving forward with its plans to regulate gold and silver benchmarks. The Financial Conduct Authority announced Monday that starting April 1, 2015, it will regulate a total of seven additional UK-based financial benchmarks in the fixed income, commodity and currency markets.
According to the FCA, the London Gold Fixing and the London Bullion Market Association Silver Price, will be two of the seven new regulated benchmarks………………………………………..Full Article: Source

Levin seeks crackdown on physical commodities

Posted on 17 December 2014 by VRS  |  Email |Print

Sen. Carl Levin has introduced a bill seeking to crack down on trading on inside information in physical commodities, the first such legislation limiting Wall Street banks’ ability to deal in physical markets from crude oil to aluminum.
The bill, co-sponsored with Republican John McCain, is seen as the Michigan Democrat’s parting swipe at Wall Street before he retires in January. He has previously accused Goldman Sachs and other banks of manipulating physical commodity markets……………………………………..Full Article: Source

India should allow banks to hold gold as reserves: WGC

Posted on 10 December 2014 by VRS  |  Email |Print

India should allow banks to use gold as part of their liquidity reserves, which would let them make more use of gold inside the country and reduce the need for imports, an industry body said on Tuesday, seeing that as an alternative to import curbs.
The world’s second-biggest consumer of the metal should also consider setting up an exchange for transparent gold pricing and to streamline trade, according to a report commissioned by the World Gold Council (WGC). “We have made our points to the government and some of these recommendations are in consideration,” said Somasundaram PR, head of the WGC’s India operations. He did not elaborate………………………………………..Full Article: Source

US Banks Reprimanded for Influencing Commodities Prices

Posted on 09 December 2014 by VRS  |  Email |Print

A two-year probe conducted by Republican and Democrat lawmakers from the Senate Permanent Subcommittee on Investigations has found several US banks culpable of major violations in the commodities markets. The report determined that some of the biggest banks, including Morgan Stanley, Goldman Sachs and J.P. Morgan Chase & Company stockpiled massive volumes of inventory in commodities like copper and aluminum.
Beyond stockpiling inventories, these banks gained significant advantage over the financial system by participating in coal production, uranium and other volatile businesses. By participating in these activities, the banks jeopardized the entire financial system………………………………………..Full Article: Source

India: Commodity Market Regulator Plans to Introduce Call Auction

Posted on 01 December 2014 by VRS  |  Email |Print

The Forward Markets Commission (FMC) is planning to introduce the concept of call auction for half an hour in order to curtail market manipulation in commodity futures. The call auction is prevalent in stock markets.
“We are soon planning to introduce call auction for an half hour with 100 per cent delivery. This will help in getting the final settlement price for commodities futures,” FMC Chairman Ramesh Abhishek told PTI. There were some complaints that prices are being manipulated while determining the final settlement price in a commodity futures contract, he said………………………………………..Full Article: Source

Fed on Commodities, Credit Suisse Plea: Compliance

Posted on 25 November 2014 by VRS  |  Email |Print

The Federal Reserve may curtail Wall Street commodity businesses after lawmakers said banks’ role in energy, power and metals markets spurred unfair trading advantages and could threaten financial stability.
At a Senate hearing Nov. 21 held by the Senate Permanent Subcommittee on Investigations, Fed Governor Daniel Tarullo said curbs under consideration include ownership limits, restricting how much revenue can be derived from commodities and requiring Wall Street firms to boost capital. He said the new rules, to be proposed early next year, could restrict banks from investing in oil tankers, coal mines and other businesses involved in physical commodities………………………………….Full Article: Source

Fed set to tighten commodities rules

Posted on 24 November 2014 by VRS  |  Email |Print

The US Federal Reserve is preparing to unveil new restrictions aimed at making it harder for Wall Street banks to make big bets in the commodities markets, according to testimony on Friday from Fed Governor Daniel Tarullo.
Tarullo struck an unexpectedly aggressive stance in his appearance in front of a Senate subcommittee that has been investigating the involvement of big banks in the markets for basic materials like coal, aluminum and gas. Tarullo said the Fed expected to issue a formal notice of potential new rules in the first quarter of next year. Those new regulations could force banks to amass more capital to protect against losses on holdings of commodities and restrict banks from some types of commodities operations that they are currently allowed to do…………………………………Full Article: Source

Senate probe says Goldman, other banks exploited commodity markets

Posted on 20 November 2014 by VRS  |  Email |Print

A two-year Senate investigation into Wall Street’s physical commodities business found that U.S. banks had manipulated prices and gained unfair trading advantages at the expense of consumers.
While the detailed report was critical of how banks purchased and exploited huge commodity stockpiles, it did not offer any damning new details on their activities………………………………Full Article: Source

U.S. Fed began rejecting commodity trade requests in 2010: report

Posted on 20 November 2014 by VRS  |  Email |Print

The U.S. Federal Reserve has been quietly quashing some Wall Street requests to delve more deeply into physical commodity markets since 2010, according to a new Senate report that includes previously unreported details of the Fed’s oversight of the area.
While critical of the “uncoordinated, incoherent patchwork” of rules limiting banks’ activities in physical raw materials trading, the report by the Permanent Subcommittee on Investigations also showed for the first time that the Fed had actually begun denying some requests to engage in the market………………………………Full Article: Source

India: Commodities in regulated warehouses exempted from stock limit

Posted on 11 November 2014 by VRS  |  Email |Print

The government has exempted commodities kept in regulated warehouses from the purview of stock limits effected by state governments to curb hoarding under the Essential Commodities Act.
This was one of the key reforms that commodity markets regulator Forward Markets Commission (FMC) was pushing with the Consumer Affairs Ministry for last few years. In a latest circular, the commission said: “Department of Consumer Affairs has informed that the commodities kept in regulated warehouse (registered by the Warehousing Development and Regulatory Authority) have been exempted from stock holding limits under the Essential Commodity Act, 1955.” ……………………………………….Full Article: Source

CFTC Turns Toward Administrative Judges

Posted on 10 November 2014 by VRS  |  Email |Print

The Commodity Futures Trading Commission plans to start steering some of its cases against trading firms, brokers and others to administrative law judges appointed by federal agencies, instead of trials in federal court, according to a top official.
The move comes as defense lawyers criticize the escalating use of administrative law judges by regulators pursuing financial wrongdoing, saying it eliminates an independent jury from the process. Securities and Exchange Commission officials have said previously they intend to more often use administrative proceedings for insider-trading and other complicated cases………………………………………..Full Article: Source

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To inject more liquidity, commodity market regulator raises position cap

Posted on 24 October 2014 by VRS  |  Email |Print

Commodity markets regulator Forward Markets Commission (FMC) has decided to allow hedgers, brokers and investors to take higher positions in futures contracts as part of its efforts to ensure more liquidity in the market.
In order to usher in more transparency in the market, the commission has asked the exchanges to display details of top traders on their websites. The revised norms, issued on Wednesday, have come into effect immediately………………………………………..Full Article: Source

India Looking at Merging Commodity Market Regulator With Sebi

Posted on 06 October 2014 by VRS  |  Email |Print

The government is considering a proposal to merge the Forward Markets Commission (FMC) with the Securities and Exchange Board of India (Sebi) to ensure better monitoring of the commodity futures market. “One of the options being considered by the government is merging FMC with Sebi,” a senior Finance Ministry official said.
Alternatively, the official said, the government may also pursue the long-pending proposal to give more powers to FMC by amending the Forward Contract Regulation Act (FCRA) Amendment Bill. While FMC is the regulator for commodities trading, Sebi regulates the capital markets………………………………………..Full Article: Source

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