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Bank Reform Seen by Schreiber Pushing Commodities Into Opacity 

April 9, 2014
Rudy Ruitenberg, Bloomberg

Banks pulling out of commodity trading because of rules on proprietary investing and capital requirements are pushing raw-material trade into less regulated and more opaque territory, investor Eric Schreiber said.

Regulations such as Basel III and the Dodd-Frank Act have a “significant impact” on banks, pushing commodity business to trading houses, according to Schreiber, the former head of commodities at Swiss wealth manager Union Bancaire Privee.

“One of the unforeseen consequences is that it’s pushing part of the business into a more opaque, unregulated area, that is, the trading houses,” Schreiber said before a presentation today at a United Nations conference in Geneva.

Read more: Bloomberg

 
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