Soft spot: Fed OKs commodities. (U.S. Federal Reserve Board) (TrendLines)

Futures (Cedar Falls, Iowa), November, 1993 by Reerink, Jack

Bank of Montreal subsidiary Harris Futures Corp. was allowed by the US Federal Reserve Board to trade non-financial commodities in US exchanges. The trading of such commodities was previously restricted by the Federal Reserve Board because its scope was considered to be unrelated to traditional banking. This decision sets the stage for other bank holding companies who are seeking permission to carry out similar activities.

The U.S. Federal Reserve Board has permitted Harris Futures Corp., a wholly owned subsidiary of the Bank of Montreal, to trade non-financial commodities on U.S. exchanges. The ruling paves the way for other derivatives outlets of bank holding companies (50 as of Oct. 1, of which 27 are non-U.S.) to take on non-financial commodities.

Until now,...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.