Oil majors step up commodity derivatives market making in Asia as banks cut back

Handicapped by tighter regulations, banks have ceded derivative market-making share to oil majors such as BP and Shell

Old School vs New School

BP, Shell and Total are among the oil majors that have increased their market-making presence in oil and oil product derivatives in Asia as banks have reduced their commodity businesses, according to market players.

Although there are no public figures available on over-the-counter oil derivatives market share broken down by company, sources have reported that regulatory uncertainty – over the Volcker rule, which bans prop trading, and Dodd-Frank US person definitions from the US and Emir cross

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