Market risk
El Paso sells four power plants
Houston-based energy company El Paso Corp is continuing its mass sell-off of assets by closing the sale of a further four power plants to Northern Star Generation. El Paso Merchant Energy, a business unit of El Paso Corp, sold the facilities on July 2…
Montréal Exchange and Oxen to offer energy clearing
The Canadian Derivatives Clearing Corporation (CDCC) - a wholly owned subsidiary of the Montréal Exchange (MX) - and the Alberta Watt Exchange, an Alberta-based energy exchange wholly owned by digital commodity exchange operator Oxen, are to provide…
Energy Risk launches weather derivatives survey
Energy Risk , the leading publication for energy trading and finance professionals, today launched its first annual weather derivatives survey.
Nordic volumes heading south
Nordic region electricity trading volumes are falling fast, which is damagingprofits at Oslo-based power exchange Nord Pool. The company may face postinga loss for 2004 if it cannot reverse this trend. Joe Marsh reports
Energising Houston
Bear Stearns created its Houston-based energy group to acquire and optimise powergeneration assets in North America. And the business is going from strength tostrength, says its managing director Pamela Baden. PaulLyon reports
The standard is set
Continuing last month’s focus on documentation under which commoditiesare traded on the UK’s National Balancing Point and Belgium’s ZeebruggeHub, using Isda’s European Gas Annex. By Agnes Bizet and Kevin Wulwik
Getting physical
Abstract: Asset-backed trading strategies usually employ a combination of physicalpositions, which are subject to physical risk; and financial hedging intruments,which are not. Here, Steve Leppard shows how value-at-risk, applied to this combinedrisk…
Weather patterns
OTC weather derivatives volumes are down around 20% on last year, but exchange-tradedweather futures are on the up. Paul Lyon looks at WRMA’s annual survey,and reviews the past year’s trends in the weather risk market
Banking on energy
Banks keen to establish an energy trading presence are finding that partneringwith energy companies, or even acquiring trading businesses outright, could bethe way forward. Paul Lyon reports
At ease with ethanol
Central Illinois Energy, a US farming co-op, is in the process of building anethanol plant. And it has already started to think about hedging, reflectingthe growing sophistication of the US ethanol market. PaulLyon reports
The liquidity makers
Hedge funds are bringing liquidity to the structured end of commodity markets,and some – such as Citadel – are even trading in physical energyproducts. This can only make energy markets more efficient, finds James Ockenden
Amerex to distribute market data on GlobalView
Energy broker Amerex is to distribute its power and natural gas market data through GlobalView Software, the Houston-based provider of data management solutions for the energy markets.
Senators lambast CFTC for opposing OTC market regulation
US senators Dianne Feinstein (Democrat, California) and Maria Cantwell (Democrat, Wshnington) have attacked the US Commodity Futures Trading Commission (CFTC) for opposing their legislation that seeks to increase the regulatory oversight of the over-the…
KWI allies with Toshiba to tap Japanese market
KWI, the London-based risk technology company, has created the first Japanese-language energy trading and risk management (ETRM) application in conjunction with Toshiba Corporation, the Japanese developer and manufacturer of power generation systems.
BNP hires in commodity derivatives, following departures
French bank BNP Paribas has made four hires in its commodity derivatives business, following the departure of two senior members of its team last month. In early May Dutch bank ABN Amro hired Wayne Harburn, BNP’s former head of European energy trading,…
Barclays Capital begins US power trading
Barclays Capital has completed its first US power swap, a trade which represents the start of its commodities business expansion into the Americas.
APX to launch Zeebrugge gas exchange
APX – formerly known as the Amsterdam Power Exchange – today said it will launch a natural gas exchange for the Zeebrugge hub in January 2005. APX will develop the exchange in conjunction with Huberator, a subsidiary of Fluxys, the Belgian gas…
Options trading on EEX by year-end
Members of the European Energy Exchange (EEX) will be able to trade power options on the exchange by the end of 2004, with training and trading simulation for members beginning in July.
Fortis to enter energy trading with Xenon
Fortis Financial Services, the market trading affiliate of Fortis Bank, has selected Sakonnet Technology's Xenon trading and risk management application for its new energy trading activities in New York.
Merrill Lynch tipped to bid for EKT
Rumours are circulating that Merrill Lynch may snap up Entergy-Koch Trading (EKT) following last week’s news that New Orleans-based Entergy Corporation and Wichita’s Koch Industries are considering selling their Houston-based energy trading business.
Senator releases Enron evidence
US Senator Maria Cantwell (Democrat, Washington) and Washington State’s Snohomish County Public Utility District (PUD) yesterday released financial documents and audiotapes that allegedly show how Enron illegally obtained at least $1.1 billion in profits…
Danish state-owned energy company signs up to Allegro
The Danish State-owned energy company, Dansk Olie og Naturgas (Dong), has signed up to use Allegro Development’s trading and risk management software for its natural gas operations.
IPE hires Fredrik Voss
Fredrik Voss, one-time chief executive of the UK power Exchange, is to join the London-based International Petroleum Exchange (IPE), as director of market development.