More pushback from the industry against further regulation. Trafigura, one of the largest commodities traders world wide has issued a white paper in cooperation with Craig Pirrong of the University of Houston. In the paper, titled Not too big to fail, Pirrong argues that even stricter capital requirements on commodity traders are not necessary (as the crash in oil has proven that they can withstand major fluctuations) and can lead to deleveraging and wider prices.
The argument is only made for commodity firms as they do not pose a systemic risk like a major bank. So, it looks like we continue into a new phase of Mifid busting. "Pick on them, not us".
Read the full white paper here.