Credit risk
Correlation and credit VAR
Navneet Arora and Shisheng Qu show that credit VAR in commodity trading is affected not only by the inherent credit risks of counterparties, but also by various correlations among counterparties and between counterparties and commodity prices
Lessons learnt
This year was one of unprecedented volatility for energy markets, yet it also marked a step-change in market maturity. Energy Risk asked some key players what they see as the defining events of 2006 and how they will affect behaviour in 2007. By Stella…
CBOT launches OTC ethanol contracts
Hot on the heels of its benchmark ethanol futures contract, the Chicago Board of Trade has unveiled plans for two new over-the-counter (OTC) Ethanol Calendar Swap contracts.
Trading opinions
Energy risk professionals from all over Europe gathered in London last month at the Energy Risk Europe conference to debate the hottest topics facing the industry today. The Energy Risk team bring you some highlights
Shifting sands
High oil prices and a lack of accessibility to reserves are reawakening oil majors' interest in Canada's oil sands. David Watkins looks at their potential and at the challenges involved in this capital-intensive mining operation
Risk management for LDCs
US Gas Distribution Companies, long experienced in managing volumetric risk, now face market risk, high commodity prices and credit risk. Matthew Frye looks at strategies to model these risks in aggregate
Bankruptcy Code confusion
Amendments to the US Bankruptcy Code concerning forwards, swaps and commodity contracts have far-reaching implications for energy company bankruptcies, but uncertainties remain, write Kenneth Irvin and Nathan Coco
SGX AsiaClear to offer clearing on partials
The Singapore Exchange (SGX) has announced that SGX AsiaClear will offer the clearing of OTC balance-of-month fuel oil 180cst and 380cst swaps from September 4.
Clearing the way for competition
Until recently, NOS was the only player offering clearing for freight derivatives. But with the arrival of new players, competition is set to intensify. Oliver Holtaway reports
Stepping up a stage
Optimism over the freight derivatives market, which waned a little at the end of last year, is on the rise again, as volumes increase and new players enter. There are still hurdles to overcome though
Industry gets energised
Attracting some 300 delegates, this year's Energy Risk USA conference was by far the biggest and most successful it's been since the fall of Enron, writes Stella Farrington
Asia's maritime centre
Traders hope that the arrival of freight and oil derivatives clearing for the first time in an Asian time zone will boost the growing FFA market in Asia
A prime time for energy prime brokerage?
The rise of electronic energy markets may prompt energy companies to seek a simple clearing solution through one primary bank, rather than build relations with several clearers, writes Ron Villarin