Join Free    |   Sign in |   Inquiry Cart(0)


Forex Daily Analysis by kalaivanan


Posted Date on 22-Apr-2014 04:23:02

Stop Loss


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.

Disclaimer : will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site.  This site and the information included herein is for general information purposes only and does not constitute an offer to sell or solicitation of an offer to purchase any security or any advisory or trading management service described herein. The writers may or may not be trading in the securities mentioned.

Copyright © 2019 All rights reserved. Version 2.04


Copyright © 2019 All rights reserved. Version 2.04


Copyright © 2019 All rights reserved. Version 2.04