Risk management
Resist the rise of the risk management machines
Overreliance on modern risk management systems, and metrics such as value-at-risk, can blind firms to tectonic structural market shifts. To help alleviate this problem, the use of human judgement and intervention is required, argues Vincent Kaminski
Trading OTC may be costlier than you think
Debate continues to rage about the merits of clearing, with some market observers arguing that the benefits of using central counterparties are outweighed by the precipitous costs involved. But such criticisms fail to take the full burden of over-the…
Liquidity flows back into freight derivatives
Rising prices and volatility spur renewed interest in dry bulk FFAs
Energy Risk Software Survey & Rankings open for voting
Make sure your vote is counted in Energy Risk's annual ETRM software rankings
CFTC chair nominated as Chilton exits
Goldman's Shenouda and O'Hagan retire; BNP Paribas takes Flax; ABN Amro appoints global head of energy; Hederman joins DoE; JP Morgan lures origination head
Sovereign hedging picks up as developing countries end fuel subsidies
A push to eliminate fuel subsidies across much of Africa, the Middle East and Asia is raising interest in the use of commodity hedging by governments as a way of containing social unrest. But it remains a challenge to get sovereign commodity hedging…
Energy trading firms must be whiter than white
Allegations of manipulation are particularly bad for energy trading firms, which should respond by holding themselves to higher standards
Risk management should be more than just a decoration
Despite massive investment in human capital and technical resources, risk managers failed to warn about the dangers of toxic assets and excessive leverage in the run-up to the global financial crisis. Their lack of authority is partly to blame, writes…
CFTC proposes 'unassailable' position limits rule
CFTC puts forward another Dodd-Frank position limits rule, generating concerns among commodity derivatives end-users
Commodity investment goes back to fundamentals
The past year has not been a good one for commodity investment. Passive commodity indexes have delivered disappointing returns, while a number of high-profile commodity hedge funds have been forced to close. What is the outlook for investor interest in…
Risk & Energy Risk Commodity Rankings open for voting
Vote now in the 2014 Risk & Energy Risk Commodity Rankings
Correlation suggests ‘return to normal’ for commodities
Commodities are being increasingly driven by market fundamentals, say analysts, forcing investors to search harder for returns
Liquidity seen as top concern for energy risk managers
Falling over-the-counter energy volumes in Europe and the US push liquidity to top of risk management agenda
Applied risk management series: Integrating stress tests with risk management
Stress testing is a vital part of successful risk management, but risk managers at energy trading firms frequently face obstacles in designing and implementing successful stress testing programmes. In this article, Carlos Blanco provides some advice on…
Liquidity forces energy firms to get creative with risk management
In some corners of the over-the-counter energy market, liquidity has become increasingly thin during the past few years. As a result, firms need to think more creatively about how they handle liquidity, say risk managers. Stella Farrington reports
An exclusive look at Commodity Investing and Trading
A new book, Commodity Investing and Trading, is now on sale from Risk Books. Energy Risk provides an exclusive preview
Energy Risk Europe: Questions over benefits of CVA for energy firms
Lack of credit team or CVA desk might make use of measure counterproductive, panellists worry
Energy Risk Europe: Commodity trading demands big data, says Trafigura CRO
Commodity trading firms urged to use advancements in big data to gain strategic advantage
Energy Risk Europe: Good times over for Europe's traders, says RWE's Krebber
Strain caused by regulation and renewables means European energy traders must adapt to survive, says RWE Supply & Trading CFO
An anatomy of financial and energy market bubbles
Despite differences in the detail, the mechanics that unfold during episodes of financial and energy market hype are the same. To avoid repeating the errors of the past, companies and individuals should bear them in mind, argues Vincent Kaminski
Report urges US coal producers to step up trading activities
Deloitte calls on US coal producers to set up prop trading desks and engage in more international origination
Cutting edge: Electricity contract risk with portfolio effects
The incremental risk of including electricity contracts in a portfolio is computed by George Levy using a Monte Carlo regime-switching approach. The volume and price processes are modelled using empirical distributions and correlation is captured via a…
Asia Commodity Research House of the Year: SG CIB
Accurate forecasting and insightful analysis prove a winning formula for SG CIB
Asia Commodity Derivatives House of the Year: Deutsche Bank
Despite cutbacks in Europe and the US, Deutsche Bank’s Asia commodities franchise continues to impress