Market risk
The future of freight
The Baltic Exchange has recently shelved plans to offer freight derivatives,yet rising freight rates should aid the development of the embryonic forwardfreight agreement market. By Paul Lyon
Brokers look toshow their worth
Brokers are increasingly looking to provide energy price data. The choice may be wider, but are energy firms getting the credible data and analysis they need for intelligent price forecasts? Joe Marsh reports
Modernisingprice reporting
Recent investigations have seriously affected the voluntary reporting of energy price data. Now, the market is ready to move on. Edison Electric Institute’s Richard McMahon gives his organisation’s views on the future operation of indexes
Jean-Marc Bonnefous
Jean-Marc Bonnefous, BNP Paribas’ global head of commodity derivatives, says his unique division will keep it ahead of the game. By Paul Lyon
Capital calculations
The latest Committee of Chief Risk Officers white paper offers capital adequacy guidelines for energy merchants. But why should energy firms perform these calculations? Glyn Holton asks whether the CCRO has missed the point
In pursuit of the eurobarrel
The markets say they do not want oil prices in euros. But denominating internationalcrude prices in euros is a political ambition the European Union seems determinedto pursue – starting with Russia. MariaKielmas reports
Cash upfront
Memphis Light, Gas & Water is readying a landmark bond sale to fund a prepay electricity contract with the Tennessee Valley Authority. But some fear the deal could set a dangerous precedent. By Paul Lyon
Dissecting risk
Abstract: Naveen Andrews and MarkThomas explore a method of calculating VAR in measuring component market risk under conditions of imperfect correlation across positions within a portfolio. It is easily adapted to existing Monte Carlo systems,…
Flexible bonds
A depressed power market means major firms face an uphill struggle to refinancetheir debt. But a commodity hedge has given US energy giant Calpine Corp considerableflexibility in its $800 million bond issue. By James Ockenden
US Senate rejects energyderivatives legislation
Energy traders applauded the Senate’s decision in November to veto proposed legislation that would place stricter controls on derivatives trading. By Paul Lyon
Bouncing back
Business may be sluggish in the energy sector, but energy risk technology companiesare adapting to the tough market environment and proving their resilience, evenif that means partnering with rivals. By Paul Lyon
Open for business
The Russian government has taken the first steps toward the deregulation of its gas and power markets, and despite recent the high-profile Yukos scandal, investors are eyeing up some interesting opportunities. By Paul Lyon
Contract killing
The California Public Utilities Commission wants to renegotiate long-term contractsthe Department of Water Resources entered into during the state’s energycrisis. So far, Ferc has been less than receptive to the request. By Paul Lyon
Nuclear renaissance
Both Canadian and US governments want to bring more nuclear power capacity online, but will the private investors come? By Catherine Lacoursière
Life without MTBE
The changeover from the use of MTBE as a gasoline blending component, to ethanol,in New York State and Connecticut on January 1, 2004 is likely to lead to pricevolatility in the oil market and make risk management using the Nymex Unleadedcontract far…
Back to basics
Correlation and volatility methods are accepted ways of measuring risk. But areview of the underlying assumptions underlying the statistics used for risk management can identify areas where errors can occur, says Brett Humphreys
Winter of content
Some forecasters are warning of a volatile winter in Europe and the US, whichmeans fluctuating demand for fuel over the coming months. Weather derivativestraders are hopeful of an upturn in business. By Paul Lyon
Bound by the rules
In his last day in office, Governor Gray Davis announced the Californian energy crisis was over. Revelations from indicted traders, and the punishments doled out to them, will have a profound effect on how the market moves forward. By Catherine…
Searching for sellers in 2003
High volatility and rising prices in 2003 clearly above fundamental levels signal the need for improved guidelines from legislative institutions andeasily accessible information
The future of ETRM
As generation, trading and retailing companies come out from under the dark cloud to prepare for what looks to be a brighter future, one issue has become critical – the need to upgrade outdated ETRM systems with 21st century architecture, portfolio…
Creative challenges in customer-driven risk management
Shell Trading’s Ken Gustafson and Jemmina Gualy shed light on the environment in North America for customers and dealers in risk management, and look at the opportunities ahead for the business