Giancarlo calls for CFTC rule simplification | CFTC's Bowen: Rules have global consequences | Trade-surveillance tech embraced by energy industry
March 16, 2017
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Regulatory & Compliance
Giancarlo calls for CFTC rule simplification
J. Christopher Giancarlo, President Donald Trump's nominee to head the Commodity Futures Trading Commission, called for the review and simplification of the agency's rules with the intention of reducing financial firms' regulatory burden. The plan does not move to repeal or rewrite legislation, but rather would streamline regulatory data submission and eliminate outdated or redundant requirements.
Reuters (3/15),  YouTube (3/15),  Financial Times (tiered subscription model) (3/15),  Risk.net (subscription required) (3/15) 
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CFTC's Bowen: Rules have global consequences
Sharon Bowen, a member of the Commodity Futures Trading Commission, said at FIA's annual conference that "market regulation is increasingly something that requires communication and agreement between different nations or even broad-based multilateral agreements to be done effectively." Market events that affect one country can "spread to the point that becomes a paramount concern to the entire world," Bowen said.
Mondo Visione (U.K.) (3/14) 
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Trade-surveillance tech embraced by energy industry
The number of energy firms that use trade-surveillance technology to detect market abuse has surged in the past three years, according to a survey. The increase has stemmed from regulatory changes, including the EU's Market Abuse Regulation, which covers commodity derivatives and spot markets.
Risk.net (subscription required) (3/13) 
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FIA asks EU to drop ETD reporting requirement
FIA has asked the European Commission to drop exchange-traded derivatives from a requirement that transactions be reported to a trade repository. The requirement "places a considerable financial and operational burden on market participants," and the European Commission should get data directly from clearinghouses, FIA says in a letter to Valdis Dombrovskis, the commission's vice president for financial services.
Politico Pro (subscription required) (3/13) 
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Dispute arises over MiFID II loophole
Regulators including the European Securities and Markets Authority say the revised Markets in Financial Instruments Directive's ruling on systematic internalizers contains a loophole that should be closed. Market participants argue that closure would prevent them from complying with best-execution requirements.
Risk.net (subscription required) (3/8) 
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ECB official calls time on Basel III debate
ECB official calls time on Basel III debate
Lautenschlaeger (Daniel Roland/Getty Images)
Sabine Lautenschlaeger, an executive board member at the European Central Bank, has said it is time to issue the global banking standards known as Basel III and conclude the remaining debates on a number of details. Lautenschlaeger also warned against any moves toward bank deregulation as she said doing so could pave the way for a new crisis.
Reuters (3/13),  Politico Pro (subscription required) (3/13) 
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Hot Topics
This Week in Commodities
Could looming El Nino reshape commodities markets?
The potential of a weak El Nino could produce a cooler start to this summer and could reshape the outlook for some commodities markets. Jim Roemer, president of Best Weather, discusses some of the potential weather trends for the remainder of 2017.
Bloomberg (3/14) 
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Gas to dominate European utility landscape
Gas, not electricity, will be the focus of Europe's power infrastructure spending over the next 10 years, a Bloomberg Intelligence report says. The report also breaks down other planned power spending in Europe.
Bloomberg Professional (3/14) 
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Stockpiles, drilling keeps lid on oil
Growing oil stockpiles are dampening initial enthusiasm over OPEC's agreement to cut output, and the broad market decline that began last week is expected to continue. Longer term, prospects remain bleak if oil majors continue to ramp up drilling.
Bloomberg Professional (3/13) 
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"Tesla effect" boosts lithium
Production of Tesla vehicle batteries at the company's $5 billion Nevada facility is helping push up prices for lithium. Last year, prices jumped 60%, which capped a threefold increase since 2014.
Financial Times (tiered subscription model) (3/10) 
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EU squeezed by natural gas prices
The rising price of natural gas from Russia is causing considerable pain for Europe, with the cost for Russian fuel at the German border jumping nearly 50% since September. "We'll likely see a further upward trend in Gazprom prices, especially strong in the second quarter," said Pavel Kushnir, a Deutsche Bank analyst.
Bloomberg Professional (3/14) 
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Goldman sticks to its guns on commodities
Patience will be a virtue in the commodities markets during the coming months, analysts at Goldman Sachs say. The bank's analysts say that supplies will start to tighten and push prices higher later in the year, so they are holding onto a positive commodities sector outlook.
Bloomberg (3/13) 
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Glencore's production plan could check cobalt prices
A plan by Glencore to restart its Congo cobalt mine could add 22,000 more tons a year of cobalt to the market and cause prices, which have jumped 135% in 2017, to fall.
Financial Times (tiered subscription model) (3/14) 
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CME Group Insights
Soybean oil market flags petroleum moves
Its small size by comparison is turning the market for soybean oil into a pretty good harbinger of what's in store for the vastly larger market for West Texas Intermediate oil, writes CME Group Senior Economist Erik Norland. Biofuels render the smaller agricultural market more sensitive to telling factors and are quicker to react to them than petroleum.
CME Group (3/8) 
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