News
Fuel hedgers bemoan bank retrenchment from commodities
Delta Air Lines and World Fuel Services describe impact of Wall Street retreat from commodity markets at Energy Risk Summit USA
Quant energy models need greater emphasis on fundamentals
Boom in shale oil and gas extraction, and growth in renewables underline importance of reflecting fundamental factors in quant models, argue experts
More work required on Remit reporting, firms say
Back-loading, self-reporting and non-standard trades continue to pose major obstacles to compliance with Remit, say energy trading firms
Bank-led commodity decorrelation theory rejected by analysts
Unctad economists' argument that bank withdrawals are loosening correlation between commodities and equities "doesn’t make any sense", say analysts
JP Morgan unveils commodities succession plan
John Anderson and Michael Camacho to succeed commodities chief Blythe Masters amid sale of physical business to Mercuria
Trafigura paper reignites debate on systemic risk
Commodity trading houses "are not too big to fail" argues white paper published by Trafigura, attracting mixed views from market observers
EU ETS decision leaves airlines playing cameo role
Airlines set to remain on the fringes of the EU ETS until at least 2016, disappointing environmentalists and market observers hoping for better liquidity
Banks counter Fed worries on physical commodities
Goldman Sachs and Morgan Stanley stress public benefits of allowing banks to trade physical commodities, while downplaying fears of catastrophic risk
Citi hires Morgan Stanley oil veteran Randall O’Connor
Head of strategic transactions quits to join Citi as Morgan Stanley pulls back from physical oil trading
Senior commodities salesman quits JP Morgan
David Samuels exits JP Morgan amid commodities shake-up and sale of physical business to Mercuria
UK power market licence changes ‘no silver bullet’
Ofgem’s moves to increase electricity market liquidity for small suppliers are a step in the right direction, but more must be done, argue market participants
Energy firms beg CFTC for clarity on commodity options
Utilities, oil producers and trading firms are urging the CFTC to issue clarification on contracts with embedded volumetric optionality
Power market coupling could spur derivatives activity
Market coupling may result in greater derivatives use and falling participation in both explicit auctions and physical nominations, survey finds
Conference highlights questions over Remit implementation
Problems encountered by Emir demonstrate issues that need to be solved before Remit reporting begins, argue attendees at Energy Risk Italia
CFTC no-action letter could end public utilities' hedging woes
CFTC exempts ‘utility operations-related swaps’ from contributing towards $25 million special entity threshold under Dodd-Frank
Renewables need stronger EU co-ordination, says regulator
Senior Italian regulator says transition towards greater use of renewables requires a “co-ordinated European approach”, including harmonised market rules
Upstart banks betting on expansion in commodities
As banking industry’s top commodity players retreat, others are increasing their activity and growing their commodities business
Renewables risk derailing benefits of EU power integration
Renewable subsidies and capacity payments threaten to quell advantages brought about by European electricity market coupling, complain industry participants
Morgan Stanley reshuffles oil liquids business amid Rosneft acquisition
Morgan Stanley names commodities CRO Nancy King as head of oil liquids business, while promoting former deputy Brett Humphreys to post of commodities CRO
PetroChina recruits BAML natural gas trader
Rapidly growing US unit of Chinese state energy giant PetroChina expands into financial natural gas trading with new hire
Power trading firm blasts Ferc over manipulation probe
Ferc investigation triggers unusual public defence by obscure power trading firm
Banks welcome FCA focus on commodity trading houses
UK regulator right to question risk posed by commodity trading houses, bankers argue
More US oil producers hedging with non-WTI crudes
Increased volatility pushes oil producers to hedge with LLS, WCS and other regional crudes
Coal derivatives market fired up by new participants
Commodity traders and physical producers move into coal derivatives as major banks retreat