Derivatives
Railroad indexing to API 2 could help US coal exporters manage risk
Link to API 2 could make exports look more attractive and reflects growing participation in coal market by US firms
Applied risk management series: modelling spreads in energy markets
The modelling of energy spreads, surprisingly, is one of the most overlooked areas in energy finance. Carlos Blanco, Michael Pierce and José Ramón Aragonés explore the most widely used one-factor and two-factor spread models for derivatives valuation and…
Initiatives promote commodity derivatives in Brazil
Recent initiatives may encourage more players to the Brazilian commodity derivatives market, but there are still many obstacles to its growth, writes Alex Davis
CFTC’s Chilton: lessons learnt from MF Global
MF Global “new poster child for the need for thoughtful regulation" that must be "proactive, nimble, quick", says CFTC’s Chilton
Rule could make OTC-cleared energy contracts 'endangered species': O’Malia
CFTC commissioner renews support for over-the-counter energy clearing tool in the face of new Dodd-Frank rules that could affect operation
Shell Energy chief calls for regulatory data confidentiality rules
The confidentiality of energy trading data provided to regulators for market monitoring purposes continues to concern market players and regulators alike, after August leak by senator Sanders
US power bodies call for clarity on Dodd-Frank “swap” definition
More guidance is needed from the CFTC on the definition of a swap, according to Ferc and other industry associations concerned about regulatory overlap
Regulator strengthens enforcement authority
CFTC finalises new Dodd-Frank anti-manipulation rule but energy experts continue to question its value
Report recommends ways to tackle energy market manipulation
A new report has suggested a framework for identifying market manipulation, arguing further clarity will boost market liquidity
Trend towards in-house clearing could increase fees and admin
The LME is the latest exchange considering whether to build its own clearing business. If the trend continues, banks could face more fees and administration
Position limits deluge continues
Group bombards CFTC with comments on Dodd-Frank position limits; final rule delay expected; quantity unlikely to trump quality says expert
Q&A: Gary Germeroth, chief risk officer at Calpine
Gary Germeroth, chief risk officer at US independent power producer Calpine, speaks to Pauline McCallion about the company, Dodd-Frank regulation and managing the risks related to renewable energy generation
Time runs out for position limits comments
CFTC’s latest position limits plan attracts thousands of comments; opinion deeply divided; new commissioner to affect final vote
Sponsored Q&A: JP Morgan
Investment banks are having to adapt as the commodities environment changes in the Asia-Pacific region. Managing Director and Chief Executive Officer of the Global Commodities Group for Asia-Pacific, Ray Eyles, explains how JP Morgan is expanding its…
Q&A: Craig Donohue, Chief Executive Officer, CME Group
As energy and commodities markets attempt to adapt to a raft of regulation changes from 2010 and lack of liquidity from 2009, Lianna Brinded speaks to the CME Group’s CEO about how risk appetite and derivative trading trends are shifting
CME slams potentially stricter position limit rules
CME Group chief executive slams proposed position limit regulations as “unnecessary”
Cutting edge technical: Carbon derivatives pricing
In carbon dioxide equilibrium models, permit prices are positive and bounded by the penalty level. To obtain closed-form solutions to the pricing of carbon dioxide derivatives, Daniel Bloch models the permit price as a function of a positive unbounded…
Solid growth expected for Asian coal markets
The market reaction to the supply problems caused by the La Niña weather pattern has illustrated how robust the Asia and Asia-Pacific coal sector is becoming. Alex Davis examines the scope for growth in both physical and derivative markets in the region
El Al enhances risk management and hedging operations
Israel’s national airline tightens up on the way it hedges jet fuel risk and currency movements
Concerns over Egypt & inflation push oil derivatives trading volumes to record levels
Oil prices will continue to rise to triple-digit highs over 2011 on long-term Egypt risk premiums and continual unrelated underlying issues, say market experts
Oil to reach over $150/bbl in 12-18 months
A prominent hedge fund manager says oil price will break through historic highs within the next 12-18 months