Market risk
Valid Assumptions Required: confidence level and holding period
In the second article of his series, Brett Humphreys examines the assumptions associated with selecting a confidence level and a holding period for a VaR calculation
Unearthing energy
As high natural gas prices continue to be the largest and ever-increasing cost for oil sands operations, the best hedge is a gasification strategy, says Catherine Lacoursiere
Matrix-based IAS 39hedge accounting
This paper outlines a method that facilitates IAS 39 hedge accounting. Thekey element is the representation of hedging instruments by an allocationmatrix. Giel Halberstadt’s method can easily be applied in any commodity orfinancial trading company
Special Report - Energy prices - Opening up the grid
Germany is set to move this year to an entry/exit system for access to its gas grids. But some in the market fear that unresolved issues could cause a bumpy start
GlobalCoal launches ARA FOB Barge Index, swap product
GlobalCoal has introduced the ARA FOB Barge Index based on their ARA barge contract.
Air India starts fuel hedging
Air India has become the first airline in India to hedge its jet fuel price risk, using commodity derivatives contracts at the end of February for the first time.
Nymex's death knell to floor?
The New York Mercantile Exchange's decision to introduce side-by-side electronic and open-outcry trading heralds the beginning of the end for its floor trade, many market participants believe
March 2006 - EFET Survey - Could do better
Gas transmission access systems across Europe must be improved significantly before efficient trading can take place, say gas traders in a recent poll conducted by the European Federation of Energy Traders
Coping with setbacks
Most risk managers and employees in energy companies are familiar with the concepts of market risk and credit risk, but operational risk is receiving more attention in corporate boardrooms these days, writes Sandy Fielden
March 2006 - Interconnector - UK left in the cold
As UK gas prices soared at the start of the year, market watchers struggled to explain why cheaper European gas didn't flood into the UK. But as the UK becomes a net importer of gas, these sorts of market inefficiencies will become more prominent, writes…
Hedging weather exposure
Volumetric weather risk is usually levered by the commodity price, resulting in cross-commodity exposure known as a quanto. Hedging such exposure with quanto instruments is costly. Victor Dvortsov suggests a simple strategy that allows efficient hedging…
Valid Assumptions Required: aggregation
In the first article of this series, in which Brett Humphreys questions some of the assumptions and decisions that go into the calculation of value-at-risk, he focuses on portfolio aggregation.
March 2006 - LNG moves offshore
Offshore LNG terminals not only circumvent environmental objections, they give suppliers global arbitrage opportunities. But are they economical, asks Catherine Lacoursiere
Full steam ahead
The rising cost of shipping fuel is causing more and more shipowners and commodity merchants to consider risk management strategies, and some sophisticated marine fuel trades are taking place as a result, writes Barry Parker
LNG moves offshore
Offshore LNG terminals not only circumvent environmental objections, they give suppliers global arbitrage opportunities. But are they economical, asks Catherine Lacoursiere
March 2006 - Relations with Russia revisited
As Europe becomes more dependent on Russia for oil and gas supplies, it endeavours to maintain good relations with Moscow, while at the same time looking for alternative ways of securing fuel
Leading the energy software revolution
The ETRM software industry is enjoying a long-awaited boom, meaning exciting developments are in store for energy trading and risk management, writes Stella Farrington