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IEE can determine regional oil price

Posted on 11 April 2014 by VRS  |  Email |Print

Iran Energy Exchange (IEE) has the potential of playing a key role in determining oil price in the region, Managing Director of Iran Energy Exchange Ali Hosseini said on Wednesday.Talking to IRNA, Hosseini noted that since Iran is an oil-rich country, IEE has the potential of increasing supplies from the current 3,000 barrels per day to 10,000 bpd.
“Iran aims to prepare the ground for the presence of foreign buyers of crude oil in the energy exchange and diversify products supplied to buyers, including gas condensate,” he said.The first crude oil transaction at Iran Energy Exchange took place on April 6………………………………………..Full Article: Source

U.S. bank regulator issues bulletin on oil, gas lending risks

Posted on 10 April 2014 by VRS  |  Email |Print

A U.S. regulatory agency on Wednesday issued tips for bankers and examiners on potential risks involved with loans for oil and natural gas production, as the domestic energy boom continues.
The U.S. Office of the Comptroller of the Currency (OCC) published on its website a bulletin laying out supervisors’ expectations for energy production lending and spelling out new examination procedures for banks issuing the loans………………………………………..Full Article: Source

Key senator says U.S. office can lift part of oil export ban

Posted on 03 April 2014 by VRS  |  Email |Print

A U.S. government office has the power to approve exports of an abundant type of petroleum and help energy companies begin to partially bypass a 40-year ban on crude exports, according to a report released on Tuesday by Lisa Murkowski, the top Republican on the Senate Energy and Natural Resources Committee.
The ban on crude exports the government put in place after the Arab oil embargo of the 1970s includes a prohibition on exports of unprocessed condensate, a light petroleum that appears in oil reservoirs as a gas, but condenses to a liquid when it leaves the well…………………………………Full Article: Source

BP warns of regulatory hit to commodities prices

Posted on 02 April 2014 by VRS  |  Email |Print

The head of one of the world’s biggest energy trader has said some of the regulation being imposed on financial markets could have “very worrying” side effects on commodities prices.
Paul Reed, chief executive of BP’s integrated supply and trading division identified a range of new threats from new regulations, including higher capital requirements and a push to using clearing houses to settle trades………………………….Full Article: Source

FMC likely to ease price limits for agricultural commodities soon

Posted on 24 March 2014 by VRS  |  Email |Print

Commodity market regulator Forward Markets Commission may relax the daily price limit for agricultural commodities on the futures platform. This will be in line with that of non-agricultural commodities such as bullion, metals and energy traded on the exchanges.
Currently, agricultural commodities have a maximum daily price limit of four per cent on both the upper and lower sides. In contrast, bullion and other non-agricultural commodities, the first price limit is six per cent. It gets extended subsequently by three per cent, with a cooling period of 15 minutes………………………………………..Full Article: Source

How Obama’s 2015 budget proposal will affect commodities

Posted on 07 March 2014 by VRS  |  Email |Print

Earlier this week, President Obama unveiled his budget proposal for the year beginning October 1. The proposed 2015 budget totals $3.9 trillion, including certain tax increases, as well as budget cuts and increases across nearly all departments. A closer look at the breakdown of Obama’s budget reveals several key factors commodity traders and investors should be aware of — particularly for the energy and agriculture industries.
In the President’s message, Obama stated “We also know that one of the biggest factors in bringing more jobs back is our commitment to American energy… The Budget advances this strategy by ensuring the safe and responsible production of natural gas and cleaner electricity generation from fossil fuels.” In regard to agriculture, however, the President’s outlined budget is significantly smaller than last year………………………………………..Full Article: Source

FCA warns that Euro laws may curtail commodities

Posted on 07 March 2014 by VRS  |  Email |Print

Four incoming pieces of legislation from Brussels will increase regulation on investing in commodities and securities, replicating the movement of commodity prices, the FCA has warned.
In an eight-page document, Regulating the Commodity Markets: a Guide to the Role of the FCA, the City watchdog claimed that the European Markets Infrastructure Regulation (EMIR), MiFID II, the Market Abuse Regulation (MAR) and new benchmarks from the European Commission could create a stricter environment for trading and investing in commodities………………………………………..Full Article: Source

CFTC nominee vows to press for curb in commodities speculation

Posted on 07 March 2014 by VRS  |  Email |Print

Timothy Massad, President Barack Obama’s nominee to head the Commodity Futures Trading Commission, told lawmakers he would “make it a priority” to finalize a rule aimed at curbing speculation by Wall Street traders in certain commodity contracts.
At his confirmation hearing before the Senate Agriculture Committee, Mr. Massad gave assurances the CFTC would pass a “position limits” rule, which was included in the 2010 Dodd-Frank law. He also deflected CFTC responsibility for overseeing investments by Wall Street banks in physical commodities such as oil and aluminum, saying the issue is “largely outside the jurisdiction of the CFTC.”……………………………………….Full Article: Source

UK commodity regulator embraces more openness: Kemp

Posted on 28 February 2014 by VRS  |  Email |Print

By publishing a new primer on the changing landscape for commodity markets and emerging issues for regulators, Britain’s Financial Conduct Authority (FCA) has taken a welcome first step towards greater transparency.
Despite its rather dull title, the FCA’s “Commodity Markets Update”, released on Thursday, is the best summary of how markets are changing in response to the fading super-cycle and tougher regulation in the wake of the financial crisis……………………………………….Full Article: Source

Fed extends comment period for new commodity rules

Posted on 28 February 2014 by VRS  |  Email |Print

The U.S. Federal Reserve gave market parties 30 more days to comment on its plan to submit Wall Street banks to greater restrictions in dealing physical commodities, the central bank said on Thursday.
The Fed last month took a first formal step to rein in banks’ ownership of oil tankers, metals warehouses and other such assets, worried that a major catastrophe could jeopardize one of the banks it oversees………………………………………..Full Article: Source

Report reveals benefit of lifting U.S. crude oil ban

Posted on 27 February 2014 by VRS  |  Email |Print

A Washington-based think-tank believes lifting a ban on U.S. crude oil exports will reduce gasoline prices. A team of economists and energy experts was assembled by Alan Krupnick, director for the Center for Energy Economics and Policy of the group Resources for the Future.
“Current U.S. policy to ban oil exports has taken on a lot of importance in U.S. energy policy circles in recent months,” said Stephen Brown, professor of economics at the University of Nevada Las Vegas. “We believed that we could contribute some valuable work to better understanding the issue.”……………………………………….Full Article: Source

Senator urges curbs on banks buying commodities

Posted on 26 February 2014 by VRS  |  Email |Print

Ohio Sen. Sherrod Brown on Tuesday said he pushed a pair of nominees for key regulatory posts to take steps to deter big banks from owning and storing oil, aluminum and other key commodities. Brown, chairman of a Senate panel that monitors financial institutions, has been urging regulators to crack down on behavior that could lead to higher prices for consumers.
Some large banks buy and hold commodities in a strategy that can lead to higher prices for things such as beer, canned food or fuel. Brown met with Chris Giancarlo and Sharon Bowen as they made the rounds among senators after their nomination to the Commodities Future Trading Commission. ……………………………………….Full Article: Source

FMC allows commodity bourses to impose differential transaction fees

Posted on 17 February 2014 by VRS  |  Email |Print

Commodity markets regulator FMC has allowed national level bourses to impose differential transaction fees for delivery and non-delivery based commodities contracts. Since 2009, the exchanges have been restrained from levying differential transaction charges based on commodities or timing.
“In suppression of the earlier directions, the Commission has now decided that the exchanges can levy differential transaction charges for different commodities,” Forward Markets Commission said in a directive issued to six national level commodity bourses………………………………………..Full Article: Source

India: Commodities, securities norms to converge

Posted on 14 February 2014 by VRS  |  Email |Print

With the commodities derivatives regulator, Forward Markets Commission (FMC), now under the finance ministry, rules governing the commodities markets are being converged with the securities derivatives’, wherever there are similarities.
One is to disallow commodity exchanges from having different transaction charges for different brokers. In securities, irrespective of volumes, the charges are similar for all brokers. However, the FMC has allowed exchanges to have different transaction charges for deliverable commodities………………………………………..Full Article: Source

Wall Street’s grandfathers of commodities to survive Fed revamp better than others

Posted on 13 February 2014 by VRS  |  Email |Print

As the U.S. Federal Reserve considers new ways of reining in banks’ trading in what it sees as risky physical commodity markets, Wall Street’s two oldest and biggest players may ultimately gain in stature.
Thanks to a longstanding legal exemption that Fed officials say limits their regulatory capacity, Morgan Stanley and Goldman Sachs may yet emerge from the regulatory upheaval that is upending banks’ commodities trading better-off than their peers, who face potentially tougher new rules………………………………………..Full Article: Source

Yellen promises new rules governing banks’ commodities activity

Posted on 12 February 2014 by VRS  |  Email |Print

Federal Reserve Chairman Janet Yellen pledged that the regulator will make changes in its oversight of banks’ role in the commodities business, which has attracted regulatory and lawmaker scrutiny.
“The Federal Reserve’s main focus in our supervision of these areas is to make sure that banks operate in the commodities activities in a safe and sound manner,” Yellen said at a House Financial Services hearing………………………………………..Full Article: Source

Commodity groups launch next attack on U.S. position limits rule

Posted on 12 February 2014 by VRS  |  Email |Print

A group of commodity firms came out against a new U.S. rule to curb market speculation in a letter on Monday, after banks successfully shot down an earlier version of the position limits rule in court.
The new rule by the Commodity Futures Trading Commission attracted well over 100 comment letters by industry participants after the agency - which regulates swaps and futures - launched it in November………………………………………..Full Article: Source

India: Commodity futures regulator to allow trading by bourse shareholders

Posted on 07 February 2014 by VRS  |  Email |Print

The commodity derivatives market regulator, Forward Markets Commission (FMC), is in the process of relaxing curbs to help brokers with a small shareholding in an exchange to start trading on it.
Chairman Ramesh Abhishek said at an Assocham conference here on Thursday that “the guidelines do not allow brokers with shareholdings in exchanges to trade even if these are in some other exchanges. We are in discussions with the government to change these. We feel brokers with up to two per cent or some such percentage can be allowed to trade as long, as they have no say in the management or on the board.”……………………………………….Full Article: Source

Global market overhaul floated by anti-rigging German regulator

Posted on 28 January 2014 by VRS  |  Email |Print

Germany’s top financial supervisor proposed moving currency and commodities trading to regulated exchanges as concern about the rigging of market benchmarks spurs a backlash by governments.
“It would make it far easier to detect trading patterns that manipulate prices,” Elke Koenig, head of the Bonn-based Bafin banking regulator, said in a phone interview on Jan. 23. The idea is to move such transactions “as much as possible to transparent trading centers under state supervision, as is the case with securities.”……………………………………….Full Article: Source

Gold-price banks meet amid regulatory pressure

Posted on 22 January 2014 by VRS  |  Email |Print

The five banks that set the benchmark price for gold are meeting Tuesday as they seek an external audit of the processes they use, according to a person with knowledge of the matter.
The five have formed a steering committee to review the so-called “London fixings” amid intense regulatory scrutiny over possible manipulation of precious-metals prices. As spot gold is traded over the counter 24 hours a day and there is no central source for data on prices, each morning and afternoon in London a group of five market participants meets to determine a snapshot of the price, commonly known as the London fix……………………………..Full Article: Source

India: FMC gives nod for continuous trading in commodity futures

Posted on 21 January 2014 by VRS  |  Email |Print

Commodity market regulator FMC has given permanent approval to four bourses — MCX, NCDEX, NMCE and ACE — for launching trade in particular set of futures contracts, instead of giving permission on an yearly-basis.
This relaxation has been given to four national bourses subject to certain conditions and also depending upon volume and level of traders’ participation in a particular contract………………………………………..Full Article: Source

Senate democrats push Fed on banks’ commodities trading

Posted on 16 January 2014 by VRS  |  Email |Print

Senate Democrats ratcheted up their criticism of big banks’ activities in the physical commodities markets Wednesday, pressuring the Federal Reserve to act quickly in an ongoing review of the banks’ ability to trade in materials such as oil and aluminum.
Several senators pressed a senior Fed official for more decisive action in the wake of the central bank’s decision Tuesday to seek input on—rather than impose—possible limitations for banks that trade, store, and sell commodities………………………………………..Full Article: Source

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Fed eyes fresh measures to restrict banks’ commodities trading

Posted on 15 January 2014 by VRS  |  Email |Print

The Federal Reserve is asking for public input on whether to put restrictions on banks’ trading and warehousing of physical commodities amid lawmaker scrutiny of potential conflicts of interest and market manipulation.
The Fed’s request released today seeks comment on 24 questions, including some on the risks posed by bank ownership and trading of commodities such as oil, gas and aluminum by deposit-taking banks and the possible benefits of imposing additional capital standards………………………………………..Full Article: Source

Commodity exchanges miffed by Mifid

Posted on 15 January 2014 by VRS  |  Email |Print

The name of the legislation is a mouthful and its acronym captures the feeling of many European commodity players towards it. The EU’s Markets in Financial Instruments Directive II, or Mifid (say it fast), could finally be agreed in Strasbourg today, after nearly four years of negotiations.
Among other things, the rules will impose fixed position limits in European commodity markets, from agriculture to metals and energy. The aim is to prevent uncontrolled speculation by traders and hedge funds who through outsized derivative transactions may seek to corner the market for their own gain………………………………………..Full Article: Source

Fed set to push ahead on new commodity trade rules

Posted on 14 January 2014 by VRS  |  Email |Print

The Federal Reserve is set to take its first formal step toward limiting major Wall Street banks’ role in physical commodities markets this week and issue a notice to seek public comment on the topic, sources familiar with the matter said on Monday.
The Fed will publish a so-called “advance notice of proposed rulemaking” on Tuesday, laying out the issues it is considering, one day before a second Senate banking committee hearing on the matter, the sources said………………………………………..Full Article: Source

Senate to quiz US regulators on Wall St. commodity bets

Posted on 10 January 2014 by VRS  |  Email |Print

A Senate panel will hold a hearing next week to question financial regulators over Wall Street’s role in physical commodity markets, drawing fresh attention to a controversy over the possible risks posed by the involvement of the largest U.S. investment banks.
The January 15 hearing by a subcommittee of the powerful Senate Banking Committee is to include testimony by top oversight officials with the Federal Energy Regulatory Commission and the Commodity Futures Trading Commission and an official from the Federal Reserve’s banking supervision arm……………………………..Full Article: Source

Commodities market regulation must evolve with time

Posted on 09 January 2014 by VRS  |  Email |Print

A Reserve Bank of India (RBI) working paper says regulation of commodity futures markets has to evolve concomitant to the changing dynamics of commodity markets. And, that only an emphasis on over-the-counter market reforms, mainly covering swap dealers, might be insufficient.
It says financialisation of commodity markets and some fundamental factors have driven commodity price inflation. Financialisation means a long-term shift in an economy from production to finance………………………………………..Full Article: Source

FMC plans boost for commodity markets

Posted on 02 January 2014 by VRS  |  Email |Print

The Forward Markets Commission (FMC) is planning several steps in the New Year to revive the commodity markets, which were hit badly by the National Spot Exchange Limited (NSEL) scandal in 2013. The regulator is planning to reduce the curbs on individual members and clients and encourage hedgers in the market.
Position limits of individual clients in the commodity exchanges are likely to be made dynamic soon. At present, these limits are fixed for each client irrespective of the overall open interest………………………………………..Full Article: Source

The U.S.’s crude oil policy

Posted on 19 December 2013 by VRS  |  Email |Print

The United States again is one of the world’s great energy powers. On Monday, the U.S. Energy Information Administration projected that American crude oil output will peak at nearly 10 million barrels per day by mid-decade, up from 6.5 million last year.
Last month, the International Energy Agency figured that the United States would overtake Saudi Arabia as the top oil producer, at least for a time. Yet some politicians remain unwilling to let the country reap the full benefits of this boon………………………………………..Full Article: Source

Regulator bars founder from India’s largest commodities exchange

Posted on 19 December 2013 by VRS  |  Email |Print

In a blow to the founder of India’s largest commodity exchange, the country’s market regulator on Tuesday barred Financial Technologies India Ltd. from running Multi Commodity Exchange of India Ltd in the wake of alleged trading irregularities at another exchange.
Forward Markets Commission ordered Financial Technologies to pare down its stake to 2% from 26% in the exchange, saying there was evidence of misconduct at its subsidiary company National Spot Exchange Ltd………………………………………..Full Article: Source

Gold measures could soon be eased in India - Analysts

Posted on 17 December 2013 by VRS  |  Email |Print

Good news is in the offing in India with the government deliberating a review of the duty structure and the restrictive measures to import gold. With the country’s current account deficit shrinking to $5.2 billion, India’s tough measures on gold are set to ease, according to reports.
“India’s CAD is just 1.2% of gross domestic product for the quarter ended September 2013, as compared to the deficit of $21.8 billion for the quarter ended June 2013 - nearly 76% down. The reduction in CAD is attributed to curbs on gold imports coupled with a smart recovery in exports following the depreciation of the rupee,” said Manish Kedia, bullion retailer………………………………………..Full Article: Source

Volcker Rule effect: Gold, Silver fundamentals to matter more

Posted on 13 December 2013 by VRS  |  Email |Print

The Volcker Rule, a provision of the 2010 Dodd-Frank Act that prohibits banks from ‘proprietary trading’ will have far reaching impact on gold and silver futures, according to Jeff Nichols, renowned precious metals economist and Managing Director of American Precious Metals Advisors.
The new rule goes into effect from April 1, 2014 and full compiance will be effective from July 21, 2015. According to Jeff Nichols, the Volcker Rule would mean large US banks such as Goldman Sachs and JP Morgan will be prohibited from trading gold and silver, including forward, futures and options-except on behalf of customers and not for their own short-term speculative gains………………………………………..Full Article: Source

Deutsche Bank quits commodities under regulatory pressure

Posted on 06 December 2013 by VRS  |  Email |Print

Deutsche Bank AG pulled the plug on its global commodities trading business on Thursday, cutting 200 jobs as it becomes the first major bank to exit the once lucrative sector due to toughening regulations and diminished profits.
Germany’s largest bank, which was one of the top-five financial players in commodities, said in a statement it will cease trading in energy, agriculture, base metals, coal and iron ore, retaining only precious metals and a limited number of financial derivatives traders………………………………………..Full Article: Source

Regulators should focus more on ‘non-sophisticated’ hedge funds

Posted on 06 December 2013 by VRS  |  Email |Print

Market regulators should focus more on non-sophisticated hedge funds rather than concentrate on so-called sophisticated players, said Paul MacGregor, Managing Director of Product Strategy at FFastFill during the latest Opalesque 2013 Chicago Roundtable.
The Opalesque 2013 Chicago Roundtable was sponsored by FFastFill, Eurex and Taussig Capital. “Maybe we should tell the regulators to focus a little bit more then on the non-sophisticated large players in the marketplace as opposed to sophisticated players and high frequency guys, which they love to spend a lot of time focusing on,” McGregor said………………………………………..Full Article: Source

U.K., German regulators scrutinize gold silver pricing

Posted on 27 November 2013 by VRS  |  Email |Print

The price-setting processes for gold and silver in the spot market are the latest to come under review from global regulators, with authorities in Europe investigating the mechanisms for both precious metals.
In the U.K., the Financial Conduct Authority is reviewing how the gold price is set, said a person familiar with the investigation, who added that it is at an early stage. In Germany, the Federal Financial Supervisory Authority, or BaFin, is looking into the rate-setting processes for gold and silver, according to a representative at the regulator………………………………………..Full Article: Source

Could a Carbon Market Policy Committee save the carbon market?

Posted on 25 November 2013 by VRS  |  Email |Print

The creation of a Carbon Market Policy Committee (CMPC) modelled on the Bank of England’s Monetary Policy Committee (MPC) should form the centrepiece of upcoming reforms to the EU’s emissions trading scheme (ETS), providing a politically independent mechanism for setting the number of carbon allowances in the market in order to drive investment in low carbon infrastructure.
That is the recommendation of a major new report from the IPPR think tank, which argues that effective reforms by the EU would not only help drive low carbon investment in the most cost effective manner, but would also help reinforce the bloc’s position as a leading player in international climate talks………………………………………..Full Article: Source

Yellen says Fed looking at possible commodities, bank rules

Posted on 15 November 2013 by VRS  |  Email |Print

The Federal Reserve may issue new rules for Wall Street’s role in commodity markets once it winds up a review of banks’ raw materials trading, the prospective new head of the U.S. central bank told lawmakers.
The Fed said in July it was reviewing a decision to allow regulated banks to trade in physical commodities, leading to banks’ ownership of assets like oil storage tanks and power plants and accusations of price manipulation………………………………………..Full Article: Source

How does Fed policy affect commodity markets?

Posted on 15 November 2013 by VRS  |  Email |Print

Monetary policy surprises can have a big impact on commodity markets, but the exact nature of the price movement depends on the direction of the change in monetary policy and the raw material in question.
New research from the Federal Reserve Bank of Atlanta finds that when the central bank surprised markets with tighter policy between 1990 and 2008, gold and platinum prices rose the most. When policy went the other way–when the Fed surprised with growth-stimulating rate cuts–prices for crude and heating oil were the biggest beneficiaries………………………………………..Full Article: Source

Regulators urged to probe metals markets abuse

Posted on 11 November 2013 by VRS  |  Email |Print

Britain’s parliamentary financial watchdog has urged regulators to probe potential abuses in metals markets as deeply as they are investigating the ongoing scandals over foreign exchange and Libor benchmark interest rates.
Andrew Tyrie, chairman of the Treasury select committee, told the Financial Times that MPs were conscious of growing concerns that the manipulation of rates – already exposed in the Libor affair, and now under investigation in a mounting regulatory probe into potential forex abuses – may go well beyond those areas and into metals markets………………………………………..Full Article: Source

U.S. regulator revives plan to limit excessive commodity bets

Posted on 06 November 2013 by VRS  |  Email |Print

The U.S. derivatives regulator on Tuesday reintroduced a plan to curb commodity market speculation, reviving a crucial Wall Street reform after a judge knocked down an earlier version of its rules on position limits.
The Commodity Futures Trading Commission proposal will set caps on the number of contracts that a single trader can hold in energy, metal and agricultural markets, a measure aimed at capping speculation that some blamed for the spike in raw material and food prices prior to the 2008 financial crisis………………………………………..Full Article: Source

C.F.T.C. approves tighter commodity trading rules

Posted on 01 November 2013 by VRS  |  Email |Print

In October 2011, as the futures broker MF Global teetered on the brink of collapse, it dipped into client accounts in an effort to avert bankruptcy. But the action failed to save the broker, and its implosion left thousands of clients short a total of $1.6 billion.
Two years after MF Global’s bankruptcy, regulators have sought to restore confidence in the industry, tightening rules that force brokerage firms to better safeguard client money…………………….Full Article: Source

Three of seven commodity exchanges in ČR may lose licence

Posted on 01 November 2013 by VRS  |  Email |Print

Three out of the seven active commodity exchanges in the Czech Republic are in danger of losing their licence and administrative proceedings due to breaches of law are under way with them, daily E15 writes Wednesday.
Two of them are exchanges trading in energies so that only one exchange enabling electricity and gas purchases for final consumption would be left. The Industry and Trade Ministry leads proceedings against the Commodity Exchange Profit due to some 20 breaches of the law on commodity exchanges…………………….Full Article: Source

Regulatory uncertainty over commodity units

Posted on 31 October 2013 by VRS  |  Email |Print

Bank ownership of commodity operations has generated lots of controversy recently. When the heat intensified, JPMorgan Chase wasted no time in announcing it would sell its physical commodity ownership business, to the surprise of no one. Goldman Sachs has not followed suit with regard to its Metro warehousing unit, but surely the issue has come up internally.
As for trading operations, the Federal Reserve has come under fire for a lack of bright lines in this area. However, it “may not unveil its plans for regulating Wall Street’s commodity trading business until early next year,” reports Reuters……………………………….Full Article: Source

New regulations may curb commodity business of Wall Street banks

Posted on 31 October 2013 by VRS  |  Email |Print

Several major banks involved in commodities business would find the going tough following the Federal Reserve move to regulate the bsuiness and impose new capital charges, according to news reports.
The Federal Reserve may review the permission granted to banking majors who engage in trading of physical commodities such as oil and metals and impose curbs on their operations. This has caused apprehensions among the banking community– Citigroup, Barclays, JPMorgan, Goldman Sachs being some of them……………………………….Full Article: Source

Chinese financial regulator warming up to commodity options

Posted on 31 October 2013 by VRS  |  Email |Print

China’s financial markets professionals have been facing an ongoing battle from policy makers as the government keeps a Chinese wall from much-needed reforms to compete with international markets. However, in a turn of events the financial watchdog, China Securities Regulatory Commission (CSRC), has hinted that it will be opening up commodity options trading.
In a notification on the regulator’s website, the firm stated that it will be allowing commodity options simulation trading to commence from November 8th. The move comes 12 months after the Dalian Commodity exchange has been exploring simulation trading in options, a common practice among venues prior to the launch of new products or solutions……………………………….Full Article: Source

Fed to outline bank commodity policy early 2014

Posted on 29 October 2013 by VRS  |  Email |Print

The U.S. Federal Reserve may not unveil its plans for regulating Wall Street’s commodity trading business until early next year, a person briefed on the matter said, deferring a decision on the politically fraught debate into 2014.
The timing confounds any expectations that the regulator would make its views known before a second Senate hearing expected next month into the rigging of aluminum and other markets, at which Fed officials are due to testify………………………………………..Full Article: Source

India: Investment in commodities: Regulated markets are a safe investment option

Posted on 29 October 2013 by VRS  |  Email |Print

For the world financial markets, an exposure in a regulated market has always been the safest investment choice. Though, currently, there are concerns about commodities in the Indian market, these can be addressed by taking a closer look at the scenario. A comparison of the regulated and unregulated marketplace will help us understand how risk can be avoided.
India has come a long way in the commodities space, turning into a stable and structured marketplace. With a well-established commodity futures platform and exchange, the scope of losses due to quality or physical deliveries is negated………………………………………..Full Article: Source

China securities watchdog says conditions ripe for commodity options

Posted on 28 October 2013 by VRS  |  Email |Print

Conditions are ripe for the launch of commodities options, China’s securities regulator said on Friday, a sign that it will soon approve some of the options contracts proposed by local futures exchanges.
China’s securities watchdog currently bars options trading, but all of China’s commodity exchanges, including the Dalian Commodities Exchange, the Zhengzhou Commodities Exchange and the Shanghai Futures Exchange, have lodged proposals to launch options on some of their contracts………………………………………..Full Article: Source

U.S. swaps regulator to vote on commodity limits rule

Posted on 24 October 2013 by VRS  |  Email |Print

The U.S. derivatives regulator will meet next month to adopt a rule that will curtail Wall Street’s ability to speculate with commodities, a measure investment banks are fighting in court. The Commodity Futures Trading Commission is revising the rule on so-called position limits, even as its lawyers are preparing to defend an earlier version knocked down by a U.S. court last year.
But Mark Wetjen, one of the CFTC’s four commissioners, said this week that the dual strategy of pursuing the appeal and a new rule at the same time was not necessarily the best, and that the agency could drop the appeal………………………………………..Full Article: Source

Fed weighs surcharge on banks’ physical commodity businesses

Posted on 17 October 2013 by VRS  |  Email |Print

Federal Reserve officials are considering imposing a new capital surcharge on Wall Street banks that own oil pipelines, metals warehouses and other lucrative physical-commodities assets, according to people familiar with the matter.
Such an approach could encourage banks to pare back their involvement in physical commodities, which has increasingly raised concerns among regulators and lawmakers………………………………………..Full Article: Source

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