On 19 November 2014, the United States Senate Permanent Sub-Committee on Investigations published a nearly 400-page-long report on Wall Street banks and their involvement in physical commodities trading and storage activities. How do such reports affect regulators?
Commodity trading companies today operate in a highly competitive and dynamic environment. Richard Sharman summarizes the current challenges facing the industry, talks about Switzerland as a business location for commodities trading and points out the global trends of the sector.
Increased competition, the growing sophistication of customers and investors have forced many organizations to introduce more complex trading products and strategies. With this increase in complexity comes an increase in the associated risks. We have identified eight red flags that could indicate increased risks for stakeholders of commodity trading companies.