Who's in charge here? In what appears to be a complete thumbing of their collective noses at...

Who's in charge here? In what appears to be a complete thumbing of their collective noses at regulators, oil companies are saying "no thank you" to rules requiring them to register as dealers if they trade more than $8B in swaps/year. Not one energy major has joined the roughly 70 investment banks who have subjected themselves to tight oversight by registering.
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Comments (4)
  • Herr Hansa
    , contributor
    Comments (3134) | Send Message
    It would seem that companies are still analyzing the competitive advantages and disadvantages of disclosure. There is also a slight possibility that more activity gets considered as hedging, and falls outside of new requirements. Considering that the airlines have been known to use derivatives tied to fuel costs, it is a little surprising that the Reuters article does not mention them; is it possible all their positions are under $8 billion?
    28 Mar 2013, 03:42 PM Reply Like
  • cheeryble
    , contributor
    Comments (131) | Send Message
    Airlines hedge fuel price, gold miners hedge gold price, others hedge currency risk (in fact gold miners got too adventurous and lost a lot).
    Is anyone suggesting BP is doing anything other than pure hedging?
    Cheeryble (long BP since shortly after Macondo thanx for obsessively overdoing the BP damnation CNN.....you got me in cheap).
    28 Mar 2013, 08:25 PM Reply Like
  • Brian Glenn
    , contributor
    Comments (25) | Send Message
    Or, perhaps the oil companies are waiting for clear statutes and consensus understanding (of govt / PriceWaterhouse / industry) as to what constitutes a "swap", for instance. Certainly some oil entities are, and for good reason. The initial blurb or blog seems to have been made in the shadows of ignorance.
    29 Mar 2013, 01:42 PM Reply Like
  • remnant
    , contributor
    Comments (3) | Send Message
    I'm all for regulating derivatives (better late than never) but banks are doing it with "other people's money" and on outrageously slim capital. Oil companies are not "too big to fail" so they don't need to be lumped in with the banksters.
    2 Apr 2013, 02:32 AM Reply Like
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