President Donald Trump has signed executive orders suspending for 180 days provisions of the Dodd-Frank Act that authorize the liquidation of distressed banks and the designation of nonbanks as systemically important financial institutions. Trump has instructed the Treasury Department to review rules governing the procedures.
The House Financial Services Committee is scheduled to mark up the Financial CHOICE Act on Tuesday. The bill, intended to replace the Dodd-Frank Act, would provide regulatory relief to banks and would roll back the Volcker rule and other aspects of post-crisis regulation.
While core changes enacted after the financial crisis should remain, it is time for regulations to be streamlined to encourage growth and better meet initial intentions, Federal Reserve Governor Jerome Powell said at the Global Finance Forum. Powell particularly called for raising applicability thresholds to ease the burden on small and midsize banks.
Former Federal Reserve Chairman Paul Volcker is defending the proprietary-trading ban that was implemented under the Dodd-Frank Act, saying the "effort has not been futile." "I've heard from people within banks who have said this has really changed the environment within banks, especially around the trading desks, which were filled with conflicts of interest," he said.
Chinese oil refiners known as "teapots" are driving increasing demand from the world's largest consumer of energy, which in turn is helping to vault Russia into the No. 1 exporter spot. "High imports from Russia mostly can be attributed to growing demand from teapots and strategic reserves purchase," said Amy Sun, an analyst with commodities researcher ICIS-China.
The "Make in India" initiative enacted by the government in 2014 is starting to pay dividends as manufacturing ramps up and brings the demand for commodities along with it. New projects, some already underway, are behind the country's increasing need for oil, coal, natural gas, renewables and metals, among other commodities.
Oil and gas producers can maintain output in the face of weak prices because of increased hedging late last year and this year, says Deloitte's John England. "Hedging incentivizes you to just keep going in and producing; it takes out the boom-and-bust cycles a little bit," England said.
Investors of exchange-traded funds have ignored a five-month-high price of silver, which has risen 14% since December. They might think "prices have gotten ahead of underlying industrial demand," Gradient Investments' Mariann Montagne says.
Asia-Pacific is becoming important for derivatives trading, says Christopher Fix, regional head at CME Group, who attributes the firm's double-digit growth in the past two years to Australia, China, Hong Kong, Singapore and South Korea. "China will be the important driver in the integration of the global derivatives markets," Fix said.
This article takes an in-depth look at the Henry Hub natural gas futures contract, now among the most-traded in the world. It looks at the evolution of the US natural gas market and details the factors that make the Henry Hub the de facto price reference.