On 5 April, FIA commented jointly with ISDA and GFMA on the European Commission initiative on the strengthening of the role of the euro in energy markets.
INTL FCStone, which owns one of the largest independent futures brokers in the U.S., has set its sights on Asia. On March 19, the firm announced a deal with Singapore's United Overseas Bank to buy its futures trading and clearing business. Once the deal closes, INTL FCStone plans to establish a full-service brokerage in Singapore and use it as the foundation for expanding its presence in the region.
To some outside observers, it may seem like a distant memory that a member of Nasdaq’s Nordic clearinghouse defaulted in September. But the event remains fresh in the minds of many derivatives market participants, and a hot topic of conversation in the industry.
The production of palm oil, the most popular vegetable oil on the planet, comes with some serious problems. In Malaysia, Indonesia and other parts of Asia, rainforests have been destroyed to create palm oil plantations, displacing endangered species and causing irreparable harm to the environment.
The production of palm oil, the most popular vegetable oil on the planet, comes with some serious problems. In Malaysia, Indonesia and other parts of Asia, rainforests have been destroyed to create palm oil plantations, displacing endangered species and causing irreparable harm to the environment.
For the agricultural futures and options markets, the uncertainty caused by current U.S. trade policies is creating both the best of times and the worst of times, according to a panel of experts speaking at the FIA's annual trade show.
Blu Putnam, chief economist at CME Group, noted that the overall level of trading in agricultural derivatives is generally up compared with last year. In particular, "short-dated options have just exploded," he said. These products are crucial for managing the risk of an immediate price break, he explained, when "some news comes out and prices move here to there very quickly."
Dan Berkovitz joined FIA president and CEO Walt Lukken in a fireside chat at his first FIA conference since being sworn in as Commissioner of the Commodity Futures Trading Commission. In addition to learning more about Dan’s background, the Expo audience also heard the Commissioner share his thoughts on the key developments impacting regulation of derivatives markets in the U.S. and across the globe.
FIA and 17 other trade associations active in energy markets jointly submitted a statement highlighting an urgent need to confirm the extension of the VAT derogation for a domestic reverse charge mechanism (“DRCM”) in European electricity, gas and emission allowance markets. The option for member states to apply DRCM was introduced to combat VAT fraud in those markets and, unless extended, will expire on 31 December 2018. Before the introduction of DRCM, billions of VAT had been defrauded from European Exchequers. The associations recommend an extension of the derogation by at least five years, a confirmation that DCRM also applies to Certificates of Origin, and comprehensive application of DRCM across all EU member states to ensure market participants can maintain trust in the integrity and safety of electricity, gas and emission allowance markets.
On 29 August 2018, FIA filed jointly with GFMA, ISDA and LBMA a response to IOSCO, asking for certain clarifications regarding the scope of the Sound or Good Practices and the provided examples.
On June 14, the Futures Industry Association and the Commodity Markets Council submitted a petition asking the Commodity Futures Trading Commission to amend the Ownership and Control Reports Rule.
