JPMorgan Chase & Co. (JPM), Goldman Sachs Group, Inc. (GS), Morgan Stanley (MS): Banks Face Harsh Commodity Regulations

The news will likely be welcomed by traders who have grown tired of watching technicals and fundamentals thrown into the wind whenever one of these institutions decides to become involved. Commodities markets will likely regain a sense of normalcy once these big players have exited, but they will leave a hole as far as liquidity is concerned. Without a doubt, big banks have the capabilities to be the biggest traders in the business, injecting a handsome amount of liquidity into the commodity world. One of the biggest thing traders need to watch as these giants exit is how liquidity and volumes are impacted, and to adjust accordingly.

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Disclosure: No positions at time of writing.

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