Feature
BNP hires former Deutsche commodities head
Noble Group names new CRO; US commodities reshuffle at Société Générale; CFTC names director of international affairs; Citi sees changes in metals and LNG; Deutsche Bank makes senior hires
The rise of iron ore derivatives
A shift in the way iron ore cargoes are priced has helped give rise to a burgeoning market for iron ore derivatives. Interest in trading the product has come from a wide range of participants, including producers, consumers and investors – making it one…
Gas market participants rail against mandatory bundling
The Agency for the Cooperation of Energy Regulators hopes a new network code on capacity allocation will promote a more efficient and open gas market in Europe. But market participants warn the principle of mandatory bundling embedded in the code could…
Trade reporting rules prove a headache for energy firms
A last-minute no-action relief letter from the US Commodity Futures Trading Commission in April gave energy firms a few extra months to prepare for Dodd-Frank reporting requirements, but participants say a huge number of challenges still need to be…
Renewables push proves challenging for Germany
An abundance of renewables capacity in Germany has caused extreme price movements, pushing volatility and trading activity increasingly towards short-term markets – forcing physical and financial market players to rethink their approach to electricity…
Renewable PPAs find favour among corporates
A small but growing number of companies are using renewable energy power purchase agreements to lock in cheap forward electricity prices. But it may take some time before going green becomes a sound risk management strategy for all firms, writes…
Volatility set to return to US natural gas market, warn analysts
Booming shale production has brought US natural gas prices to 10-year lows and dampened market volatility, making life difficult for traders. But with rising demand from industrial users, power generators and exporters of liquefied natural gas,…
Ferc ruling raises hope of greater regulatory certainty
The US Federal Energy Regulatory Authority has seen its authority sapped by squabbles over turf – most recently, losing a court battle over an attempt to fine Brian Hunter, a former natural gas trader at imploded hedge fund Amaranth Advisors. Could there…
South Korean power outage fears loom high on agenda
A lack of investment in generation capacity and safety-related nuclear shutdowns left South Korea facing warnings of severe power shortages over the past year. That is putting investment in energy infrastructure and security of supply high on the…
NWE power market coupling struck by delays
The European Union’s biggest power market coupling project to date has been beset by delays and will not now be be completed before the end of 2013. What is behind the setbacks and what do they mean for continuing efforts to forge a pan-European…
TNK-BP saga raises questions about BP's handling of political risk
Following a series of bitter spats with its Russian partners, oil major BP exited its Moscow-based joint venture, TNK-BP, in March. Market participants say the oil major’s experience holds lessons for other firms attempting to grapple with political risk…
CFTC legal counsel to depart
Hetco hires top Tudor quant; Koch swipes LNG expert from BNP; Marex Spectron hires in Asia; DME recruits products and services head; RBC hires metals head
NGL hedging takes off amid shale gas boom
US production of natural gas liquids (NGLs) has surged in recent years, causing NGL derivatives trading to expand as market participants hedge more of their output. But the market for NGL risk management products remains a work in progress, finds…
Asian refinery activity boosts oil derivatives trading
The growing market clout of refiners in Asia is giving the region a healthy boost in trading activity for derivatives linked to oil and other refined products. With local refining capacity set to grow, the trend looks likely to continue – a development…
Collateral and commodity market dynamics in the new normal
Collateral quality and depth are playing an increasingly important role in a market characterised by systemic risks and high correlations among asset classes, including commodities. That is a trend that should concern energy risk managers, argues Stephen…
EU ETS faces back-loading test
Dismal prices in the European Union Emissions Trading System are causing interest in the world’s largest emissions market to wither away. While the European Commission has come up with a plan to put it on life support, analysts say there is a 50:50…
Q&A: Alberto Pototschnig, Acer
Alberto Pototschnig was appointed as the inaugural director of the Ljubljana-based Agency for the Cooperation of Energy Regulators in 2010. In an exclusive interview, he speaks to Mark Pengelly about market manipulation, financial regulation and the…
Sommers to leave CFTC
Deutsche Bank appoints commodity co-heads; top analyst leaves Morgan Stanley; Icap Energy appoints in Singapore; Barclays loses energy research head; Huntington Bank launches hedging business