Opinion
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…
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…
A plea for certainty in regulation
Clear and unambiguous rules have the potential to satisfy advocates of sterner regulation, as well as regulated firms
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
Bank physical commodity trading is desirable, not essential
The role of banks in physical commodities is poorly understood, but it is not indispensable
Peak oil enthusiasts might be giving up too soon
Proponents of peak oil should not capitulate too soon, as the days of oil – like those of horses – are numbered, writes Vincent Kaminski
The furore over physical commodity trading
Despite the agitation over their role, there are valid reasons why banks are involved in physical commodities
Power market design leads traders to take advantage
The design of modern power pools is highly complex, creating plenty of opportunities for clever traders to profit by circumventing the rules, writes Vincent Kaminski
Physical flows will foster changes to energy benchmarks
Growth in WCS derivatives volumes highlights continuous evolution of the energy derivatives market
