LONDON (Commodity Online): With large banks exiting commodity business due to falling business revenues and increased regulatory oversight, large trading houses are likely to enter the scene, according to analysts. Reuters reported that Barclays is following JP Morgan Chase and Morgan Stanley with plans to exit commdoity trading business. The news report pointed out that investment banks have taken the decision into order to cut costs and improve returns. Meanwhile, Trafigura, a major commodity trading house based in Switzeralnd has pointed out in a new 63-page report that entry of large trading houses may not have a negative impact on industry. The study on riks management at Trafigura was conducted by Craig Pirong, a well-known professor of fiance and commodity markets commentator at the University of Houston. The study based on public filings and interview s with around 10 senior Trafigura traders and a number of c-level executives last September, reach the conclusion that wall street banks, merchant trading companies size, function and balance sheets make them far less likely to be sources of systemic risk. The study's central finding was that because commodity trading firms have stronger balance sheets, less leverage and a minimal role in supplying credit to the broader economy, they are not a significant source of systemic risk.