More on Mexico’s Oil Hedge… Bloomberg

From Bloomberg (http://www.bloomberg.com/news/articles/2016-09-01/shell-said-to-become-first-non-bank-to-join-mexico-s-oil-hedge):

Shell becomes the first non-bank to participate in Mexico’s oil hedge:

“The Mexican government spent $1 billion buying put options — contracts that give it the right to sell at a predetermined price — to lock in an average price for its export basket of $38 a barrel for next year. Shell’s trading unit was one of the seven counterparties to the Mexican government, the people said, asking not to be identified because the information is private.
Shell’s involvement is the first known participation of an oil trader in the hedge since Mexico started to lock in prices regularly 15 years ago. It shows that the retreat of some banks from commodity trading because of increased post-crisis regulation is opening up space for non-financial players.”

“Shell trades so many derivatives the company is one of the only three non-financial firms registered as a swap dealer under the U.S. Dodd-Frank Act. Nearly 100 financial firms are also swap dealers, including all the major Wall Street banks. The other two non-financial firms are rival oil company BP Plc, which also operates a large in-house trading unit, and agricultural behemoth Cargill Inc.”