Market risk
Stricter EU collateral rules threaten Nordic power market
Tighter EU collateral standards set to come into force in March 2016 may hurt liquidity in Nordic electricity derivatives, market participants say
Building and protecting the IT architecture of the future
Rapid advances in technology have brought about new challenges in the fields of cybersecurity, compliance and regulation. Peter Morrison, Strategy and Architecture, BP (Singapore), explains why large businesses should consider hiring an IT architect, and…
Energy traders hit back at French regulator over interview
Industry group blasts AMF official’s stance on Mifid II commodities provisions, bemoans regulators for being “deaf” to industry concerns
Shell may shift trading to US or Singapore over Mifid II
Oil major Royal Dutch Shell is exploring “all possible options” for compliance with Mifid II, including migrating trading activity to countries outside the EU, a company official says
Commodity premia: It’s all about risk control
Luc Dumontier and Guillaume Garchery of La Française Investment Solutions present the main commodity risk premia, ways to implement them and pitfalls to avoid
Web of EU commodity rules too complex, conference told
Mifid II, Emir, Remit and other new regimes covering EU commodity markets are not well co-ordinated, according to regulators and market participants at this year’s Emart
Oil rout sharpens energy companies' focus on credit risk
With defaults in the energy industry at their highest level in 15 years, firms are increasingly nervous about the credit standing of their peers. That has put pressure on credit teams to improve their counterparty assessments
Embattled commodity trader Noble Group loses CFO
Mercuria hires two Goldman managing directors; GDF Suez Trading hires ex-Citi oil traders; Cargill CRO set to retire; ex-Scotiabank trader resurfaces at Canadian oil firm
US spoofing crackdown is a case of misplaced priorities
In the world of high-frequency trading, there are worse practices than spoofing, but only spoofers are being sent to prison
CFTC spoofing crackdown poses compliance challenges
In the wake of the first criminal conviction in a spoofing case, US commodity traders and lawyers are concerned that the vagueness of the CFTC's rule is having a chilling effect on market participants
Bank exits from commodity trading hurt US power firms
US power companies are facing worse liquidity, increased hedging costs and a tougher time managing certain kinds of risks as a result of the exodus of banks from commodities trading
Q&A: French regulator defends Mifid II commodity rules
Mifid II has sparked an outcry from EU energy firms, which complain the new rules will force them to curtail hedging or even exit the markets altogether. But Vincent Derbali, an official with France's AMF and a member of Esma's commodity derivatives task…
In manipulation cases, "everybody's doing it" is no excuse
From the natural gas index scandal of the early 2000s to the Libor-rigging cases of today, it's always the junior employees who go to jail while bosses walk, Vincent Kaminski observes
Asset managers push CFTC for more relief on position limits
Hedge funds, pension funds and private equity firms welcome the CFTC’s new proposals on position aggregation but urge the regulator to go further
Epex Spot CEO pushes to unite Europe's power markets
Exchange mergers will drive efficiency gains and foster the integration of European energy markets, says Jean-François Conil-Lacoste
Canadian energy firms anxious over trade reporting proposals
With oil-rich Alberta and four other provinces set to finalise a joint rule on trade reporting by year-end, Canadian energy firms are hoping that regulators resolve troublesome issues with the definition of a ‘dealer' and the handling of trades with US…
BP mulls restructuring of trading unit over Mifid II
Oil major BP expects it will need a Mifid II licence for some trading activities, which may prompt the creation of a new entity to comply with the incoming EU rules
Obsession with competition isn't healthy for exchanges
Market operators spend too much time chasing their competitors and launching ‘me too' products when they need to be concentrating on the needs of their customers, the European Energy Exchange's Steffen Köhler argues
Vote now in the Energy Risk Commodity Rankings
Voting is open in the 2016 Energy Risk Commodity Rankings, which rank the top dealers and brokers in the global commodity derivatives market
Note to Brussels: energy firms are not banks
The Mifid II push to impose capital requirements on commodities firms rests on faulty logic
Mifid II sparks frantic lobbying push by EU energy firms
European energy firms are mounting a last-minute attempt to effect changes to Mifid II even as the legislative process enters its final stages. If the effort fails, a dramatic retreat from commodity derivatives markets could be in the works, Stella…
Energy Risk Asia Awards and conference 2015
The Energy Risk Asia conference, now in its eighth year, hosted more than 200 senior delegates. This was followed by a gala dinner for the Energy Risk Asia Awards, which reward excellence across the region’s commodity markets
Modelling the financial risks of wind generation with Weibull
This paper discusses the manner in which wind generation can affect the half-hourly APX price and also the risk distributions associated with various power contracts. Wind generation is modelled using correlated doubly truncated Weibull distributions,…
Nasdaq grows energy sales team with ex-Goldman hire
Barclays adds energy trader in Singapore; Scotiabank loses senior energy trader; ex-BNP Paribas trader joins consultancy ARM; Noble hires Trafigura oil trader; Koch expands in power and renewables; Castleton hires Mercuria trio