Market risk
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
The rise of mechanistic hedging
Utility hedging gains wider acceptance, but companies still need to work harder to eliminate pure price-view hedging, writes Leigh Parkinson of RiskAdvisory
March 2006 - Riding the rollercoaster
US natural gas prices have proven to be susceptible to weather-related price swings. Andy Weissman looks at what a risk manager should consider when designing a price risk management program
CME eyes energy market
The Chicago Mercantile Exchange plans to launch energy futures contracts once its non-competitive agreement with the New York Mercantile Exchange expires this summer.
E.ON bids $35 bn for Endesa
German power and gas company E.ON has announced a $35 billion (29.1 billion euro) bid for Spain’s largest power company Endesa.
Spectron brokers first UK dark spread
The first brokered UK dark spread has been traded through UK-headquartered brokerage Spectron. The trade, between Sempra and Scottish Power was a Summer ‘06 deal, representing 5,000 tonnes of coal (API#2) versus 15 MW of electricity. It is understood to…
Nymex’s side-by-side trading seen as deathknell to floor
The New York Mercantile Exchange (Nymex) will introduce side-by-side electronic and open-outcry trading in its physically settled energy futures contracts in the second quarter of 2006.
SGX and CBOT to partner on commodities
The Singapore Exchange (SGX) and Chicago Board of Trade (CBOT) will launch a joint commodities derivative exchange early this year, marking a step towards fulfilling SGX's strategy to be an Asian gateway. Joe Marsh reports