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Market risk

End of an era for GdF

Gaz de France is certain to lose its monopoly position – without it, what strategy can the gas giant adopt in a liberalised European market? Mickael Laurans reports

Weather option pricing with transaction costs

The weather derivatives market is becoming more liquid, and dynamic hedging of weather options with weather swaps is now possible, though limited by transaction costs. Here Stephen Jewson investigates the effect of such hedging on option pricing

Entergy-Koch reaps the benefit

While its quiet discipline made Entergy-Koch Trading one of the less glamorous energy trading houses during the Enron boom years, its steady business model is now paying off, as James Ockenden reports

A mark-to-market u-turn

A reversion to the old, non-mark-to-market regime for accounting for energy trading contracts is changing the energy supply business, reports Catherine Lacoursière

Weighing up the options

The Brazilian energy market is set for more upheaval as the incoming president seeks a compromise between his campaign promises of greater state control over energy and the goal of attracting foreign investors into the sector. Maria Kielmas reports

El Paso helps RiskMetrics adapt

RiskMetrics Group, a company more often associated with the financial sector, is implementing its risk solution software at energy firm El Paso Corp. How is it adapting the software to the specifics of the energy sector? Kevin Foster reports

A long road to deregulation

Prospex Research’s Ben Tait reports on Spain and Portugal’s progress in integrating their power markets. High ambitions for deregulation are proving difficult to achieve

All clear for energy

Several organisations have brought over-the-counter clearing to the US energy markets over the past six months. Kevin Foster assesses their progress and asks whether they can all survive

FAS 133: increasing transparency

Standard & Poor’s Jack Kennedy and Neri Bukspan believe new Financial Accounting Standards Board rules for US energy traders will make it easier to measure a firm’s risk management ability, liquidity position and equity capital

Gas storage and power prices: inextricably linked

While much has been made of the effect of natural gas storage on gas prices, very little thought has been given to its impact on the price of electricity. John Hopper, president of Falcon Gas Storage Company, analyses the situation

Looking to the long term

After years of public debate, the European Commission, energy companies and governments of gas-producing countries all seem to agree that long-term gas contracts are here to stay. So why is it still such a big issue, asks Maria Kielmas

LNG: handling flexibility risk

Even though the euphoria about the global liquefied natural gas market has dissipated, experts still forecast significant long-term growth. But in a buyer’s market the supplier has to understand the new risks. Maria Kielmas reports

Prices stable in market turmoil

Given the major changes taking place in the energy trading sector at present – and in view of recent events – it is not surprising that prices are behaving very differently from those last year. Eric Fishhaut of GlobalView Software gives an appraisal

Mark-to-market accounting revisited

New risk disclosure and valuation regulations are aiming to revive energy trading in the US, but cumbersome accounting rules may put companies off hedging altogether, finds Catherine Lacoursière

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