Energy derivatives
Energy market focuses on counterparty risk
The critical importance of counterparty risk management was demonstrated by the bankruptcy of Lehman Brothers in September 2008. In response, banks and other energy market participants have been trying hard to improve their game. Gillian Carr reports
Energy Risk Europe: EC official questions energy industry estimates of clearing costs
Recent industry estimates of the cost of clearing are met with scepticism during a roundtable discussion at Energy Risk Europe
Will CFTC's new powers lead to more market manipulation cases?
US regulators have gained new powers to battle energy market manipulation, and the White House is pushing them to act more aggressively. Should traders be worried? Alexander Osipovich reports
Multi-factor forward curve models for energy risk management
In the second article of this series, Carlos Blanco and Michael Pierce introduce the most common multi-factor models of the forward curve used for energy derivatives pricing and risk measurement
Cutting edge – multi-scale volatility in commodity markets
This paper deals with volatility estimation in commodity markets. Piotr Grzywacz and Krzysztof Wolyniec note that energy commodities have many time (volatility) scales, which has dramatic implications for mean-reversion and volatility estimation. They…
EC’s Capital Requirements Directive deemed “detrimental” to energy trading
The revised proposal for the Capital Requirements Directive (CRD) presented by the European Commission (EC) on July 20 has sparked serious concerns among energy companies, traders and exchanges
Hedge funds see potential in European carbon markets
There is growing interest by hedge funds in carbon trading. Traders are diversifying their funds and business risk by combining carbon investments with allocations to related asset classes. By David Walker
Algorithmic trading in energy
Algorithmic trading has made slow progress in energy markets. Ned Molloy looks at the reasons for the limited uptake and at the market’s prospects
Over half a billion CERs at risk of homelessness post-2012
Restrictions to which offset credits will be acceptable after 2012 could leave 530 million credits ‘homeless’, but demand from Japan and NZ may fill the gap finds Katie Holliday
Proprietary trading conundrum
With implementation of the Dodd-Frank Act due to start next year, Alex Davis examines how the commodities markets stand to be affected by the Volcker rule
CME’s CCP to clear Middle East products and reduce 'black swans'
Clearport courts emerging market derivative exchange products in a bid to reduce systemic risk in commodity markets
Energy markets are top EU priority says EC's Lowe
As Europe's energy risk managers outline their regulatory risk concerns, the European Commission's Philip Lowe looks to reassure the market
Video: Interview of Natixis's Asia-Pacific energy chief
Charles Maulino, head of global energy & commodities coverage, Asia-Pacific at Natixis, speaks exclusively with Lianna Brinded about the evolution of energy and commodities financing and hedging strategies
Video: Isda Asia-Pacific chief says new regulations 'potentially dangerous'
Keith Noyes, Asia-Pacific regional director at the International Swaps and Derivatives Association (Isda), speaks to Lianna Brinded about regulatory changes and the impact they will have on the energy and commodities markets.
EDHEC-Risk slams France on commodity derivatives regulation
Influential risk management and analytics business school, the EDHEC-Risk Institute, has criticised France for its hardline approach to commodity derivatives market regulation on lack of evidence
China CDMs plummet by 30% on legality risk
The number of approved Clean Development Mechanism (CDM) projects in China tumbles by 30% after investors voice concerns that the generated credits will not be legal under future emissions' regulation
China's Sinopec: gas production up 40% as demand grows
China’s state-owned energy giant Sinopec reveals natural gas production soars by 40%, as proven reserves ebb lower, suggesting heightened imports are on the horizon
BP’s Gulf of Mexico oil spill will not push fuel switching
Experts quash fears that tighter restrictions following BP’s Gulf of Mexico oil spill will result in oil to gas fuel switching in the US, thus pushing up gas prices
UK end-users face power and gas price volatility
Experts warn that major UK end-users may face another quarter of power and gas price volatility, indicating the necessity of a risk management programme
End-users adopt more complex hedging tools and methods
End-users’ energy and commodities hedging strategies are growing in sophistication as they adopt more complex products and non-traditional tools, says the head of RWE npower’s optimisation desk
Singapore’s commodities derivatives exchange to go live
Singapore’s central bank Monetary Authority of Singapore (MAS) gives the green light for new commodity and currency derivatives bourse
IEA: BP’s oil spill threatens future supply
The International Energy Agency (IEA) expresses major concerns over future oil supply, as new regulations threaten to tighten deepwater drilling, following BP’s Gulf of Mexico oil spill
Energy firms' hedging programmes give mixed results
Hedging programmes for oil & gas companies show widely differing outcomes according to the latest flurry of company results
LCH.Clearnet in a raft of Asia deal talks
Clearing giant LCH.Clearnet strengthens its position in Asia as it looks to seal a number of clearing deals with a raft of exchanges and other market participants