Market risk
Why traders ignore risks and go full speed ahead
Incentives often drive excessive risk-taking, while caution is punished, Vincent Kaminski argues
Enron’s California schemes haunt regulators 15 years later
The failures of the first liberalised US power market still shape the Federal Energy Regulatory Commission’s anti-manipulation agenda. But has the pendulum swung too far towards enforcement?
Energy firms urge EC to ease Emir clearing rules
Industry groups are using the European Commission’s review of Emir to push for changes to rules for calculating their exposure to clearing thresholds – tweaks that could make a big difference in whether commodity firms are saddled with the dreaded ‘NFC+’…
Few commodity traders saw improved liquidity in 2015 – poll
Three-quarters of traders surveyed say liquidity in OTC commmodity derivatives held steady or declined last year, while 25% saw gains
CFTC de minimis report worries US energy firms
Use of “alternate indicators” for dealing activity raises alarm bells in industry
Ending Emir hedge exemption conflicts with Mifid II, firms say
EU energy firms warn Esma’s proposal to scrap the Emir hedge exemption would introduce a glaring inconsistency between Emir and Mifid II
Staying agile and fit for purpose in commodity financial systems
Commodity houses are searching for more sophisticated ways of enhancing their risk management systems. Instead of tearing down the old order, or duplicating systems across services, Amine Chbani, head of commodities business development at Murex,…
Position limits are an idea whose time has passed – Giancarlo
Low commodity prices dent rationale for US and EU anti-speculation rules, CFTC commissioner says
Commodity traders cheer CFTC record-keeping fix
Regulator softens Dodd-Frank rule that energy and agricultural commodity traders had complained was burdensome
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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