The commodities market is under siege. With concerns about depressed economic growth in China, market sell-offs are catalyzing volatility across equities and commodities. According to Wood Mackenzie Chief Economist Ed Rawle, we may be looking at a "black hole for commodity demand" if China's declining economy creates a cyclical downturn in consumption. While volatility may be creating margin opportunities, traders still are facing slumping commodities revenues. According to a recent research report from consultancy Coalition, global commodities-related revenues at the top 10 investment banks have fallen by 25% in the first half of 2015. Additionally, for institutional traders, tighter regulatory and capital requirements have put downward pressure on commodities trading businesses.
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