Fed proposing new rules on commodities - ANZ

Analysts at ANZ noted the new regulations in respect to commodity markets.

Key Quotes:

"In what some newswires are reporting as a response to criticism that some US financial organisations could seize unfair advantages in commodity markets by owning large stocks of hard assets and also large trading desks at the same time, the Fed has proposed a new rule “that would strengthen existing requirements and limitations on the physical commodity activities of financial holding companies.” The new rules require banks to hold more capital and also restrict the amount banks could trade. Financial shares fell on the announcement."