Market risk
Polish power exchange chooses OMX software for trading and clearing
In a move to develop its electricity spot and derivatives market, the Polish Power Exchange (PolPX) will use the Condico system from Stockholm-based OMX, the owner and operator of the Swedish stock exchange.
EEX set to compete with EXAA in Austrian spot power market
Austrian energy exchange EXAA will soon have competition for spot trading of physical power in its home market. From April 1, Austrian companies will be able to trade electricity for delivery to most of Austria directly on Germany's European Energy…
Both sides of the fence
Ernst Eberlein and Gerhard Stahl analyse price series of 25 energy spotrates simultaneously using Lévy models. This model class allows thecapture of stochastic behaviour of these financial instruments.Theimplications of this analysis will form the…
A solid foundation
MotherRock, the energy hedge fund set up by former Nymex president Bo Collins, recently chose Kiodex’s ASP-based risk management software. Joe Marsh explores the trade-off between web-based and installed systems
Turbulent times
The new Renewable Sources Act obliges German utility companies to buy all the wind power generated in the country on any one day. And it is adding a new volatility to the German power market. By Stella Farrington
Germany’s closed shop
Despite six years of liberalisation, Germany’s gas market is still virtually closed to outside competition. Writing from Germany, Stella Farrington looks at whether new regulation is finally about to bring change
Midwest power market to start on April 1
The US energy market regulator yesterday gave the Midwest Independent System Operator (Miso) the go-ahead to launch its wholesale energy market on April 1, after several delays.
Hanging on at the top
This year’s User Choice Awards demonstrate that quality counts. In a fast-changing market, the top vendors and packages have managed to stay ahead of the pack. But the winners cannot rest easy. With IT budgets deflated, it’s a competitive market, and…
The sum of its parts
One can view a corporation’s individual projects as a portfolio of options – useful risk management tools to be used if their risk/return ratios are better than that of the firm as a whole. But how to work out the equity cost of capital at this…
Shopping for curves
More regulation requires more accurate valuation of forward trades – and a need for more reliability in the forward curve tool. Sandy Fielden presents an informal survey of the data choices available to energy risk managers in the US natural gas and…
A solid foundation
MotherRock, the energy hedge fund set up by former Nymex president Bo Collins, recently chose Kiodex’s ASP-based risk management software. Joe Marsh explores the trade-off between web-based and installed systems
Calgary’s oil patch
Some Canadian oil and gas producers got their fingers burnt last year as oil prices soared and hedging programmes resulted in big losses. What will their strategies be in 2005? Catherine Lacoursiere reports
A complicated option
Why does the New York Mercantile Exchange not list average-price WTI crude options as a contract on its ClearPort electronic platform? Internal politics could be the main obstacle. Joe Marsh reports
Opec split over increasing oil production
Ministers of the Organisation of Petroleum Exporting Countries (Opec) arriving in the Iranian city of Esfahan Tuesday sent out mixed messages over the expected outcome of Wednesday’s meeting.
The swap terminator
Multilateral swap cancellations look set to become commonplace in the energy sector, thanks to a service from TriOptima, which has just terminated its first round of oil swaps for six firms. Joe Marsh reports
Rankings 2005
The energy markets gave corporates and funds plenty to think about in 2004 – and while the banks still dominate the rankings, some sectors have been taken over for the first time by energy companies. All is revealed in this year’s comprehensive round-up.
Merrill Lynch starts building coal desk
Matt Schicke, former director of coal trading at Michigan-based DTE Energy, has joined Merrill Lynch to build a US coal trading desk from its Houston office. As vice-president, he is initiating steps to trade coal, said Merrill spokeswoman Terez Hanhan.
The experts excel
The fast and furious energy markets gave corporates and funds plenty to think about in 2004 – and while the banks still dominate the energy rankings, some sectors have been taken over for the first time by energy companies. By James Ockenden and Joe Marsh
OpenLink may launch web-based version of Endur
OpenLink may launch a web-based version of Endur, its energy trading and risk management system, according to Matt Frye, Houston-based managing director of the software company.
Nymex confirms plans to launch in London
The New York Mercantile Exchange (Nymex) today announced plans to open an open-outcry Brent futures floor in London. "It's our intention to move to London as soon as possible," Nymex president James Newsome told reporters in London.
Real-time trading
In an efficient, real-time power market, low-cost generation units are dispatched ahead of those with higher operating costs, and the market price reflects balanced generation and load. Here Shulang Chen discusses the basic functions of a real-time…
Layers of intrigue
The Yukos saga – up to now largely confined to the political and legal arenas – recently took a step closer to the physical oil markets with a $6 billion oil deal between China and Russia. By Stella Farrington
A bid for power
Clock auctions are a fairly recent method for utilities of procuring electricity from suppliers, but only New Jersey has an established process. Yet Ohio and Illinois are showing interest. Joe Marsh reports
Exceptions to the rule
With commodity markets set to fall within the scope of more EU regulation, trade associations are concerned that this extra burden on market participants could stifle trade. By Stella Farrington