Market risk
US energy firms cheer regulators’ shift on margin rule
In an about-face, the Fed and other bank regulators exempt non-financial end-users from requirement to post margin on non-centrally cleared swaps
Marex Spectron global head of energy departs
Marex Spectron picks Jeremy Elliott and Hunter Baldwin to replace Gordon Bennett, its global head of energy, who has left the broker after 12 years
Energy firms face Emir confirmation challenge
A looming deadline for confirming OTC derivatives is expected to cause problems for smaller energy firms, which may find themselves blocked from trading with bigger counterparties
Technology special report
Derivatives trade reporting, CpML, and the increasing use of governance, risk and compliance software by utilities all feature in this exclusive special report by Energy Risk
CpML to foster standardisation among energy traders
First developed by Efet, CpML is a standardised language for the storage and exchange of commodity data, which could help reduce the industry’s high levels of operational risk. As a new standalone entity takes over the running of CpML, Filip Sleeuwagen,…
Energy Risk 20-year rankings
Since 1994, Energy Risk has ranked the top dealers and brokers in commodity markets in conjunction with sister publication Risk. Here, we present the industry’s top-ranked firms for the past 20 years
Cutting edge: Incorporating forex volatility into commodity spread option pricing
In this article, Joseph Yechong Chen extends Kirk’s formula to spread option pricing when forex is a stochastic factor and is multiplied to one leg in the payoff formula. The article illustrates the importance of forex risk factors and the need to…
Energy firms eye opportunities in Mexican power
International energy companies hope to prosper from Mexico's programme of energy reforms, which includes the creation of a wholesale spot market in electricity
CFTC and Ferc see a changing of the guard
GDF Suez hires SG energy derivatives head; Citi appoints in commodity sales; BNP Paribas recruits investor sales head; Marex Spectron adds meteorologist; Freepoint gains oil trader
European gas trading boosted by uncertain outlook
Volatility in European natural gas is soaring due to upheaval in Ukraine and an unusually high amount of gas in storage, prompting a rise in hedging and financial trading
CFTC quietly amassing data on natural gas swaps
Numerous energy companies have received special calls from the CFTC in the past year, say lawyers, but the reasons for the agency's interest remain murky
Energy firms rely on patched-up solutions for reporting
Under new rules in Europe and the US, energy firms have to aggregate trade data from a variety of internal sources and report it to repositories. While it was hoped this process could lead to wider improvements in analytics, risk management and…
Power companies slam New England reliability plan
Electricity companies are criticising "unreasonable" and "discriminatory" measures designed to keep New England's lights on during the coming winter, arguing in favour of a longer-term fix
Cosgrove moves into ethanol trading after GFI
After a three-decade career in energy brokerage, Michael Cosgrove has reinvented himself as an ethanol trader. Alexander Osipovich finds out why
Tougher UK Remit sanctions to be felt across EU
Proposed UK criminal penalties for manipulation and insider trading under Remit would have "very broad" effect across European energy market, according to lawyers
Energy firms fight for right to hedge at portfolio level
CFTC position limits rule could limit the ability of energy firms to hedge, unless they aggregate commodity derivatives positions held across disparate business units
Banks down, but not necessarily out, in commodities
Investment banks are making deep cuts in commodities, but they are not departing from the market entirely
UK power market investigation overshadowed by EMR
A Competition and Markets Authority (CMA) probe into the UK power market, which may result in a radical shake-up of the sector, is coming amid major changes to the industry under Electricity Market Reform. How the CMA reconciles this will be closely…
US utilities invest in shale gas wells as long-term hedges
Florida Power & Light becomes latest US utility to pursue acquisition of natural gas production assets as risk management strategy
Looking back: Lehman stirs credit and liquidity risk fears
Six years ago, the bankruptcy of investment bank Lehman Brothers sent shock waves through energy and commodity markets, as Energy Risk reported in October 2008
Commodity desks breathe sigh of relief over Volcker
US banks say their initial concerns over the Volcker rule of Dodd-Frank have turned to relief, as the rule's drafting allows them to continue making markets in commodity derivatives
Ercot ‘small fish' rule criticised amid CFTC probe
Amid consternation over the activities of GDF Suez Energy North America in the Texas power market and an investigation by the US Commodity Futures Trading Commission, some market participants are questioning the legal protection afforded to smaller…
Bespoke OTC reporting a struggle for energy firms
European energy trading firms say they are finding compliance with Emir trade reporting rules onerous and heavily reliant on manual intervention, particularly when it comes to non-standard trades
John Arnold looks back at 17 years of energy trading
In an exclusive interview, John Arnold talks to Alexander Osipovich about the extraordinary success of his former hedge fund, Centaurus Advisors, the difficulty of hiring good traders and why he walked away from energy trading after 17 years