Risk management
Using credit valuation adjustment to set limits
In their previous article, Carlos Blanco and Michael Pierce introduced the concept of credit valuation adjustment (CVA). In this next instalment, they explore CVA allocation methods and discuss alternative structures using CVA to set limits, credit…
CFTC offers last-minute Dodd-Frank relief
Agency eases compliance burden for commodity and energy firms
Oil price reporting agencies' principles won't deter manipulation, say critics
International Organization of Securities Commissions principles for oil price reporting agencies fail to silence critics
Trading positions: October 2012
Energy Risk catches up with the latest appointments, promotions and departures in global commodity markets
Is risk modelling keeping up with the energy market?
Lean times in energy and commodity derivatives trading have caused a cutback in the amount of time and resources spent on energy risk modelling – a worrying trend that could leave firms unprepared for future market challenges, argue some experts. Mark…
Energy Risk Europe: Indexes won’t be included in MAD, say panellists
Energy indexes may not be included in EU market abuse rules, but remain likely to be hit by further scrutiny
Position limits rejection lifts compliance burden
Rejection of Commodity Futures Trading Commission rule brings short-term relief and longer-term uncertainty, say consultants
Experts question shift in Mexico oil hedging strategy
Use of put spreads in oil hedging programme leaves Mexico dangerously exposed to low oil prices if global economy sinks
Energy Risk's Asia awards 2012
Energy Risk's annual Asia awards, now in their fifth year, honour innovation and achievement in Asian energy derivatives markets. A ceremony for the winners was held in Singapore on September 26 and here we reveal the winners and why they triumphed
Ex-Credit Suisse bankers founding energy risk advisory firm
Former head of power trading joins at least one ex-colleague to found Scoville Risk Partners
Credit valuation adjustment for energy and commodity derivatives
This is the first of a two-part series on credit valuation adjustment (CVA). In this piece, Carlos Blanco and Michael Pierce introduce the concept of CVA and show how to calculate CVA at the trade and portfolio levels
Aggressive oil hedging enables Plains E&P’s big deepwater play
Plains Exploration & Production will hedge up to 90% of its oil production for the next three years, the Houston-based company says as it reaches a deal to buy $6.1 billion of oil assets in the Gulf of Mexico from BP and Shell
Outlook for freight derivatives market
Liquidity in the dry bulk freight derivatives market dried up rapidly this year with many players exiting the market. Jay Maroo talks to market experts about their outlook for the market now and what needs to be done to kick-start it
Does commodities floor trading have a future?
Once the beating heart of global energy markets, the Nymex trading floor now seems to be in its death throes. Alexander Osipovich asks how much longer open outcry has to live – and whether we should be sorry to see it go
New breed of upstream oil & gas firms have increased appetite for hedging
The growth of master limited partnerships in the North American energy sector is creating a new breed of exploration and production companies with an increased appetite for hedging. The biggest of these, Linn Energy, has hedged 100% of its production out…
Energy Risk interview: chief fund manager at Japan's Astmax
Tetsu Emori, chief fund manager at commodities-focused asset manager Astmax, talks to Energy Risk about the firm’s trading strategy and his commodities outlook for Asian investors
Energy Risk interview: Bharat Petroleum's hedging programme
RK Mehra, executive director (international trade) at Bharat Petroleum Corporation Limited, talks to Jay Maroo about his company’s commodity hedging programme, corporate hedging in India and the likely effect of any regulatory changes
Outlook for commodity trading in Asia
Commodities trading in Asia has grown significantly with corporates looking eastwards for new opportunities and growth. But an uncertain global climate and regulatory differences provide challenges. Gillian Carr reports