Market risk
Nymex and Shanghai Futures Exchange look to work together
The New York Mercantile Exchange (Nymex) and the Shanghai Futures Exchange (SHFE) have signed a memorandum of understanding to explore potential areas of cooperation which they say could mutually benefit the memberships of both exchanges.
EnergyCurves to market North American energy data
Four energy brokers have formed a Houston-based company called EnergyCurves to provide North American power and gas data services to the energy markets. The initial EnergyCurves products will be forward price curves for the North American gas and power…
Bright future for weather derivatives, finds survey
Energy Risk has completed its inaugural weather derivatives survey and the results show that traders appear to be confident about the state of their business, despite high profile exits from the industry in recent years.
Following the trend
The analysis of historical meterological data is vital for structuring weatherderivatives. But how should weather traders deal with the trends that may existsin the data? Steve Jewson and JeremyPenzer investigate
Weather wrap-up
Energy Risk’s inaugural weather derivatives survey shows that traders and end-users appearto be confident about the state of their business, despite high-profile exitsfrom the industry in recent years. Paul Lyon analyses the results
Accepting responsibility
Alex Schippers heads ABN Amro’s weather team – arguably one of the most innovative desks in Europe. Here he talks to Paul Lyon about the state of the global weather risk market
Raining information
Weather data is becoming increasingly accessible and more detailed, and – in Europe at least – publicly available data looks set to become less costly. Joe Marsh reports oncurrent developments in the weather risk market
PSEG sets up weather desk
New Jersey-based utility Public Service Enterprise Group (PSEG) has established a weather derivatives desk. The desk is headed by Roman Kosecki.
Former Enron executive pleads guilty
John Forney, a former Enron executive, yesterday pleaded guilty toone count of conspiracy to commit wire fraud for the purpose of manipulatingCalifornia's electricity market during the 2000-2001 Westernenergy crisis, the US Attorney's Office for the…
Calpine sets up $250m credit facility
California power company Calpine has entered into a $250 million letter of credit facility with Deutsche Bank, which expires in October 2005. The San José-based company expects this new credit enhancement structure to widen its spark spreads and increase…
Looking to the east
Can power market operators in the new EU member states in eastern Europe gainthe liquidity they need to challenge either bilateral electricity contracts orthe established exchanges? Joe Marsh reports
Putin’s endgame
The geopolitical premium on oil prices is rising as Russia pursues its ‘oligarchs’. Catherine Lacoursiere reports on the wider effects of Russian oil giant Yukos’ collapse
Dealings in diesel
In the latest in a series of articles in which Energy Risk profiles energy users’ risk management and hedging strategies, Joe Marsh talks to US rail company Amtrakabout how it deals with its fuel exposures
All systems go
More than 450 of you voted and voiced your concerns in Energy Risk’s inaugural User Choice Awards. Below we show which suppliers you voted for as top of their field in the energy business this year
Huberator’s hopes
APX and Fluxys subsidiary Huberator are planning to launch a gas exchange forthe Zeebrugge hub in early 2005. But is an exchange really needed by the tradingcommunity? Paul Lyon reports
APGA supports Ferc decision to fine three companies
The American Public Gas Association (APGA) has applauded the US Federal Energy Regulatory Commission (Ferc) for its decision to fine three energy companies $8.1 million for sharing natural gas storage inventory data with their customers and affiliates. …
Viva lost vegas
Brett Humphreys discusses the problems of calculating true value-at-risk on aconcentrated options portfolio – in particular, the various pitfalls thatcan befall a risk manager in ignoring vega risk – and considers ways ofhandling these issues
A decent exposure
Most energy companies have a portfolio of over-the-counter energy derivativesthat could have significant credit exposures. In this paper, RafaelMendible examines the credit exposure of these derivatives, its relationto volatility,and its relation to…
Vertical take-off
As UK supplier Centrica narrows its focus to fund an asset acquisition spree, James Ockenden finds the ‘asset-light’ utility model has finallybeen buried and a move towards ‘vertical integration’ is now thestrategy of choice
Building load links
In the third article in this series, Les Clewlow , ChrisStrickland and MichaelBooth show how the Monte Carlo techniques used in previous articles can accuratelyhighlight the crucial relationship between price and load – a complex correlationaffecting the…
Edison Mission sells off foreign power assets, posts Q2 loss
California-based Edison Mission Energy is to sell its remaining foreign generation assets to London-based generator International Power and Japanese trader Mitsui & Co for $2.3 billion. International Power will take a 70% stake and Mitsui a 30% stake of…
DrKW forms energy trading business
Investment bank Dresdner Kleinwort Wasserstein (DrKW) has formed a London-based energy trading business, headed by Neil Rothwell.
BNZ enters energy trading
The Bank of New Zealand (BNZ) has launched an energy risk management desk. The plan is to target the bank’s corporate client base who need hedging solutions for their energy, base metals and agricultural commodities exposures, said Wayne Jolly, BNZ’s…