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Risk management

Measuring success

A cutting-edge survey by McKinsey & Company reveals which types of trading are most prevalent and successful among utilities. Using survey data, McKinsey's Jörg Doege, Sven Heiligtag and Peter De Wit suggest guidelines for creating successful trading and…

Feeling the heat

Uncertainty over future fuel prices is proving a headache for airlines. While many put on successful hedges last year ahead of widely anticipated price spikes, this year's price falls have discouraged hedging. Joe Marsh looks at how airlines in Asia are…

Whose side is your consultant on?

Choosing the most appropriate front- and middle-office software often requires companies to seek expert advice. However, consultant expertise and objectivity can vary greatly. Choosing the right software consultant is a task itself, writes Ryan Rogers of…

Nymex to offer uranium futures contracts

The New York Mercantile Exchange (Nymex) has signed a 10 year agreement with Ux Consulting Company, a uranium pricing index and information provider, to introduce on and off-exchange traded uranium futures products. The contracts will be listed on the…

Engineering change

A new risk management culture is evolving in the Asian clean development mechanism market, which should lower CDM project risk while expanding financing options, finds Catherine Lacoursière

Purchase timing

Managing purchase timing risk is a constant issue for wholesale power buyers. Pavel Diko reviews products that reduce this risk, proposes a lookback option that can eliminate it completely and outlines a hedging strategy for the option writer

Has mean reversion had its day?

Some experts are questioning whether mean-reversion models – once the standard way of explaining energy price movements after simple one-factor Brownian motion modelling fell from favour – are still suited to the petroleum and gas markets. Dario Ghazi…

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