Risk management
Bank exits from commodity trading hurt US power firms
US power companies are facing worse liquidity, increased hedging costs and a tougher time managing certain kinds of risks as a result of the exodus of banks from commodities trading
In manipulation cases, "everybody's doing it" is no excuse
From the natural gas index scandal of the early 2000s to the Libor-rigging cases of today, it's always the junior employees who go to jail while bosses walk, Vincent Kaminski observes
Vote now in the Energy Risk Commodity Rankings
Voting is open in the 2016 Energy Risk Commodity Rankings, which rank the top dealers and brokers in the global commodity derivatives market
Energy Risk Asia Awards and conference 2015
The Energy Risk Asia conference, now in its eighth year, hosted more than 200 senior delegates. This was followed by a gala dinner for the Energy Risk Asia Awards, which reward excellence across the region’s commodity markets
Modelling the financial risks of wind generation with Weibull
This paper discusses the manner in which wind generation can affect the half-hourly APX price and also the risk distributions associated with various power contracts. Wind generation is modelled using correlated doubly truncated Weibull distributions,…
Nasdaq grows energy sales team with ex-Goldman hire
Barclays adds energy trader in Singapore; Scotiabank loses senior energy trader; ex-BNP Paribas trader joins consultancy ARM; Noble hires Trafigura oil trader; Koch expands in power and renewables; Castleton hires Mercuria trio
Barclays adds energy trader in Singapore
UK banks bulks up commodities team in Asia with hire from Koch Industries
Potential for catastrophe lurks in complex systems
Human failings can subvert even the most sophisticated systems that companies put in place to prevent disaster, which is why a true risk management culture is important, Vincent Kaminski argues
Centrica CRO keeps watchful eye on new regulation
Managing all Centrica's financial risk is a challenging task, and one that is made increasingly complicated by regulation, chief risk officer Olivier Herbelot tells Mark Pengelly
Revenue put options gain popularity in US power markets
Dealers, led by Morgan Stanley, have made revenue put options an increasingly popular hedging tool with US electricity firms seeking to build new power plants. But some observers warn that the largely untested product contains risks for dealers and their…
Quant ideas: Strategic versus tactical risk management
Strategic or enterprise risk management has long been seen as something of a Holy Grail for risk managers. However, the susceptibility of enterprise risk tools to poor quality data means the whole effort is likely to be misguided, argues Krzysztof…
Energy Risk Asia Awards 2015: The winners
The 2015 Energy Risk Asia awards recognise excellence across commodity and energy trading and risk management. We reveal the winners
Asia commodity research house of the year: ANZ
ANZ has scored well with its prescient price forecasts, as the bank builds up its commodities research effort
Asia technology house of the year: Aspect Enterprise Solutions
Aspect Enterprise Solutions is having a good year in Asia thanks to the growing popularity of its cloud-based CTRM software amid market volatility
Asia metals dealer of the year: ANZ
ANZ has shown its commitment to Asia’s metals markets despite recent turbulence
Javelin Global Commodities builds coal trading desk
Other commodities moves at CF Partners, CME, DTCC and Vectra
Index investing paper shows gap between theory and reality
The theories of commodity index investment gurus Gary Gorton and K Geert Rouwenhorst have little in common with the experience of real-world investors
Commodity end-users fret over shrinking number of FCMs
Futures brokers attack costly new rules at a CFTC meeting on September 22
Liquidity biggest worry for RWE Supply & Trading CRO
The varied career of Uwe Schulz, CRO of RWE Supply & Trading, has led him to appreciate the dangers of liquidity risk – something that is particularly relevant in today’s energy market environment
The challenge of optimising physical energy assets
How energy trading organisations can improve the way they optimise their assets
Commodity index advocates stick to their guns
Ten years after publishing an influential paper that fuelled the commodity investment boom, Yale professors Gary Gorton and K Geert Rouwenhorst have revisited their study and found their arguments still "largely hold up". But critics are quick to disagree
Internal transfer price optimisation for integrated energy firms
By selecting appropriate levels for the internal transfer prices of commodities and risk, an energy company can influence the alignment of its overall risk-return profile with its strategic objectives. Here, Henrik Specht, Sergey Zykov, Tilman Huhne and…
Acer reappoints Pototschnig for three-year term
Barclays hires senior energy traders; CFTC's Wetjen steps down; Freepoint nabs JPM energy trader; ICBC SB boosts commodities team; ABN Amro reshuffles commodities