• 1 hour Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 20 hours Oil Prices Rise After API Reports Major Crude Draw
  • 21 hours Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 21 hours Gazprom Speaks Out Against OPEC Production Cut Extension
  • 22 hours Statoil Looks To Lighter Oil To Boost Profitability
  • 23 hours Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 5 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 6 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 7 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 7 days Lower Oil Prices Benefit European Refiners
  • 7 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 8 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
Iran: Most OPEC Producers Back Extension Of Cuts

Iran: Most OPEC Producers Back Extension Of Cuts

The majority of OPEC members…

Who's Next? Venezuela's Collapse Puts These Nations At Risk

Who's Next? Venezuela's Collapse Puts These Nations At Risk

While investors have been ignoring…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Tougher Energy Trading Rules See Canadian Banks Step Up

Tougher Energy Trading Rules See Canadian Banks Step Up

The feds invoked tougher trading regulations earlier this month, leading analysts to predict that Wall Street would lose its advantage over commodity hedging to the benefit of the oil and gas majors, and now Reuters is reporting that Canadian banks are stepping up their deal-making.

Major Canadian banks who have long focused on energy trading, hedging and deal-making are stepping up to the plate across the Americas, picking up market share, according to the report.

Executives from the Bank of Montreal (BMO-T), Canadian Imperial Bank of Commerce (CM-T) and Bank of Nova Scotia (BNS-T) told Reuters they were expanding operations in Canada, the US and even South America.

"We have been able to pick up market share not only in our home market but able to rapidly grow our business in the U.S. and overseas in places like the North Sea," Adam Waterous, a veteran oil banker who heads Scotiabank's global investment banking team, told Reuters.

The tougher trading regulations, known as the Volcker Rule, were finalized on 10 December by banking and securities regulatory agencies, and will prohibit proprietary trading by banks with the end goal of drawing a line in the sand between commercial banking and investment banking.  

The Volcker Rule, implemented in the wake of the financial crisis and named after former Federal Reserve Chairman Paul Volcker, is being viewed by some as a major coup in commodities trading for non-banks, including oil majors and commodity trading houses.

While banks such as Deutsche Bank and JP Morgan had been downsizing their commodities in anticipation of the tougher rules, the three Canadian banks saw their commodity trading revenues rise 30% in 2012.

Scotiabank, the largest trader of commodities, reported a 26% jump in commodity trading revenues, up to USD$397 million last year, according to Reuters. Royal Bank of Canada saw its trading revenues jump 11% for the same time period.

Though the Canadian banks do not appear to be eyeing physical crude oil trading, like JP Morgan, they are planning on beefing up investments in industry logistics and storage.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News