Sberbank announces that it has created a subsidiary company named SB Commodity Trading LLC, and completed its first physical commodity
purchase and sale transaction on the domestic market involving the provision of financing for oil companies and refineries.
The plan soon drew attention from the US Federal Reserve, which has been examining banks' physical commodity
operations, and contacted Morgan Stanley with questions about Wentworth.
Besides completing the all-cash transaction with Mercuria, JP Morgan agreed to sell to other buyers' physical commodity
assets that had originally been included in the Mercuria transaction.
With the finalisation of the transactions, JPMorgan will have sold or liquidated substantially all of the physical commodity
assets included in the original all-cash deal with Mercuria, the company stated.
For the first time, the Fed sent out a preliminary notice to issue in which its posing questions and requesting ideas on how bank oversight in the physical commodity
If you do go for the physical commodity
and pay storage costs, your return can be a lot less than you anticipated.
However, other traders feel that a "risk off" vibe is in place throughout physical commodity
markets, and a recent pattern of cooler than normal temperatures in the US may not be enough to provide any lasting support for the heating oil market.
The reason is that unlike ETFs, where only a part of the net asset value is invested in the physical commodity
and the rest is invested in debt or cash instruments, one unit of an e-series product is an electronic warehouse receipt of one unit of the commodity.
Freepoint Commodities LLC, a physical commodity
trading and marketing company, has named Michael Gamson as its senior managing director.
The report addresses the G20's November 2010 request for further work on regulation and supervision of physical commodity
Given the dual role that crude oil plays both as a physical commodity
and as a > financial asset, we need to improve our understanding of the interlinkages between the physical and financial markets, if we are to address the issues of price volatility and price discovery in the oil markets," Reddy said.
Limited Physical Commodity
Trading Activities for FHCs.