Commodities archive
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EU competitiveness dominates European conversations
Whether you follow the news on the new institutional cycle of the European Commission or you have attended a policy conference in Europe lately, every conversation finds a way back to discussing the EU’s ongoing Capital Markets Union debate. EU leaders are keenly interested in attracting capital to its markets. The question of whether they will tackle the difficult issues will determine their overall success.
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Energized by the energy markets
Earlier this month, FIA hosted its annual commodities forum in Houston, Texas. In the hometown of the energy industry, we brought together people from across the commodities landscape for discussions about how much the energy industry has changed and what opportunities for the futures industry lie ahead. Listening to our speakers, I heard the same refrain: demand will increase even more as energy markets grow increasingly complex and volatile.
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Margin requirements and liquidity planning: Four case studies in commodity futures
Energy markets have been subject to a series of shocks in the past few years, all of which have had a significant impact on prices of the derivatives traded on these products and as a consequence the margin requirements demanded from traders in the derivatives market.
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FIA responds to EBA-ESMA review of the prudential framework for investment firms
FIA responded to the EBA-ESMA discussion paper on the European Commission call for advice on the investment firms' prudential framework, noting the importance of ensuring EU IFR/D is fit for purpose and that the application of prudential rules to commodity firms would be inappropriate, unduly complex, disproportionate and limit market entry for many small-size market participants.
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FIA asks CFTC to sunset large trader reporting for commodity swaps
FIA, joined by ISDA, has responded to the CFTC’s notice of intent to renew the collection of large trader reporting (LTR) data for physical commodity swaps. The associations reiterate and build on requests they have made in recent years for the CFTC to sunset the LTR rules for swaps, which were envisioned as a temporary measure while the CFTC stood up its comprehensive swap reporting framework under Dodd-Frank.
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LME nickel futures - bouncing back
In the two years after the London Metal Exchange was forced to close its nickel market and cancel $12 billion in trades, the exchange has worked hard to win back the confidence of market participants through a number of reforms. Trading volumes are rising again, but open interest has not fully recovered, and two new competitors have emerged.
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CFTC Agricultural Advisory Committee holds meeting in Kansas
The US Commodity Futures Trading Commission's Agricultural Advisory Committee held a meeting on 11 April, in Overland Park, Kansas. This meeting preceded AgCon2024, the third Agricultural Commodity Futures Conference hosted by the CFTC and the Center for Risk Management Education and Research at Kansas State University.
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FIA responds to FCA consultation on derivatives markets transparency
FIA welcomes the Financial Conduct Authority’s proposals regarding the revised bond and derivative transparency regime in the UK. Resilient and robust markets are of key importance to FIA members and FIA supports the consultation’s stated aim of streamlining transparency requirements so that they better reflect the nature and depth of liquidity in the market.
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FIA supports IOSCO’s good practices for voluntary carbon markets
On 1 March FIA responded to a public consultation issued by the International Organization of Securities Commissions outlining a proposed set of “good practices” to promote the integrity and orderly functioning of voluntary carbon markets (VCMs). In the response, FIA commended IOSCO for fostering a much-needed dialogue on the issues surrounding the development of VCMs.
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FIA responds to FCA commodities consultation CP23/27
FIA has submitted a response to the FCA’s commodity consultation. The FCA proposals are based on the UK’s wholesale markets review, initiated by HM Treasury in 2021. While FIA supports FCA’s goals of promoting market integrity and resilience, it is concerned about FCA’s proposed approach to the ancillary activities exemption.
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