Commodity derivatives
Coal derivatives market fired up by new participants
Commodity traders and physical producers move into coal derivatives as major banks retreat
Fed probes catastrophic risks in bank physical commodity trading
The US Federal Reserve has moved to tighten the rules on physical commodity trading by banks, citing fears they might suffer huge losses as a result of an environmental disaster. How valid are such concerns and what steps is the Fed likely to take?…
Emir reporting deadline causes alarm among commodity traders
Commodity derivatives end-users hit hard by Emir reporting rules, say industry sources, especially smaller firms
Risk & Energy Risk Commodity Rankings 2014 – energy
The past 12 months proved tough for energy dealers, with low volatility, poor liquidity and sluggish levels of client activity. Given this, some banks decided to scale back their commitment to the market – a trend that is reflected in this year’s results…
Non-bank commodity traders seen as benefiting from Volcker rule
End-users will hedge more with firms such as BP, Shell and Vitol as banks face ban on prop trading, say market participants
Sovereign hedging picks up as developing countries end fuel subsidies
A push to eliminate fuel subsidies across much of Africa, the Middle East and Asia is raising interest in the use of commodity hedging by governments as a way of containing social unrest. But it remains a challenge to get sovereign commodity hedging…
Sovereigns look to hedge fuel imports after Morocco deal
More energy importing countries are in talks about hedging fuel purchases after Morocco’s sovereign hedging deal, say bankers
Energy Risk Europe: Commodity derivatives rules flawed, says SEB’s Iwarson
Derivatives regulation will impede attempts by banks to compete and do lasting damage to European market, says founder of SEB’s commodity business
Banks’ physical commodity trading comes under scrutiny
Amid a review of a 2003 determination by the Federal Reserve, the involvement of US banks in physical commodities has come under fire from regulators, politicians and the media. Could they really be forced to exit physical trading? Alexander Osipovich…
Energy firms find Emir thresholds too close for comfort
The European Market Infrastructure Regulation will force non-financial counterparties to clear trades in over-the-counter derivatives once they reach a set of notional thresholds. And despite their original expectations, many energy companies could be…
Commodity derivatives regulation gathers pace outside EU and US
Although much of the recent focus has been on rules in the European Union and the US, other jurisdictions across the globe are also weighing changes to the way they regulate over-the-counter commodity derivatives. In some cases, these could have…
Energy Risk Glossary 2013
The Energy Risk Glossary: the most comprehensive reference source for anyone involved in the global energy markets
Financial transaction tax could raise energy company hedging costs
FTT will increase hedging costs for energy companies and deter them from trading with financial counterparties, firms say
Bank commodity VAR remains muted in Q4
Fourth-quarter results show low risk appetite continues to prevail at banks, reflecting tougher capital requirements and a continuing lack of trading opportunities, writes Jay Maroo
Applied risk management series: OTC commodity swaps valuation, hedging and trading
In this article, Carlos Blanco and Michael Pierce provide an overview of swap instruments and discuss the pricing, valuation, hedging and risk management of over-the-counter commodity swaps. They also comment on the expected ramifications of new…
Cutting edge: Jamshidian decomposition for pricing European energy commodity swaptions
In this article, Hamid Arian and Ion Rada propose a practical method for calculating the exact price of energy commodity European swaptions under the standard Markov diffusion model for energy commodity futures term structure. Their argument faithfully…
LNG derivatives suffer from lack of liquidity
The growth of LNG fuelled high hopes for the LNG derivatives market, causing exchanges to launch a variety of contracts during 2012. But firms say there’s a long way to go before a liquid market emerges. Jay Maroo investigates
Banks retreat from commodity derivatives
Increasing capital requirements and other regulatory constraints are cutting the headcount and risk-taking ability of banks in commodity and energy derivatives. Might this diminished role pave the way for less regulated participants to take their place?…
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
Position limits rejection lifts compliance burden
Rejection of Commodity Futures Trading Commission rule brings short-term relief and longer-term uncertainty, say consultants
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
