Market risk
Exchanges plan futures in response to RIN price surge
CME Group and Ice plan to roll out futures based on biofuel Renewable Identification Numbers
Applied risk management series: Venturing beyond VAR
In this article, Carlos Blanco and José Ramón Aragonés review the historical simulation methodology used to estimate value-at-risk and expected tail loss, while including adjustments to traditional assumptions that can help improve risk forecasts for…
Renewables push proves challenging for Germany
An abundance of renewables capacity in Germany has caused extreme price movements, pushing volatility and trading activity increasingly towards short-term markets – forcing physical and financial market players to rethink their approach to electricity…
Evolution Markets opens Singapore coal desk
Hiemstra to lead new Asian office; EDF Trading hires power traders; Barclays loses head of commodity research; Vitol enters ag commodities; Davies leaves Trayport
Physical portfolio optimisation – improving margins in a tight market
In this corporate statement, Rashed Haq, vice president, Sapient Global Markets, explains how an analytical market-based approach can improve decision-making and reduce risk for commodity firms.
Energy firms give mixed response to Dodd-Frank swap reporting delay
Energy firms frustrated and relieved after eleventh-hour change to Dodd-Frank swap reporting deadline
Renewable PPAs find favour among corporates
A small but growing number of companies are using renewable energy power purchase agreements to lock in cheap forward electricity prices. But it may take some time before going green becomes a sound risk management strategy for all firms, writes…
Volatility set to return to US natural gas market, warn analysts
Booming shale production has brought US natural gas prices to 10-year lows and dampened market volatility, making life difficult for traders. But with rising demand from industrial users, power generators and exporters of liquefied natural gas,…
Ferc ruling raises hope of greater regulatory certainty
The US Federal Energy Regulatory Authority has seen its authority sapped by squabbles over turf – most recently, losing a court battle over an attempt to fine Brian Hunter, a former natural gas trader at imploded hedge fund Amaranth Advisors. Could there…
Evolution Markets creates Singapore physical coal desk
Evolution Markets is latest firm to ramp up efforts brokering coal cargoes in Asia
Turning points: SEB's Torbjörn Iwarson
While many investment banks are having a tough time in commodity markets, Swedish bank SEB is going against the grain by increasing its appetite for risk. Torbjörn Iwarson, the bank’s head of commodities, talks to Jay Maroo
Lack of regulatory clarity hampering PRA code of conduct
Price reporting agencies expect to release updated industry code of conduct shortly, but warn regulatory uncertainty could delay their efforts
Energy firms struggle to meet Dodd-Frank reporting deadline
With Dodd-Frank reporting and record-keeping rules set to come into effect on April 10, energy companies worry they won’t be ready in time
Cutting edge: Correlation functions in the crude oil and natural gas futures markets
Given the importance of the crude oil and natural gas futures markets, the intra-market correlations in these markets play an important role in pricing, hedging and managing the risks of energy portfolios. This paper by Ehud Ronn contributes to the…
Risk & Energy Risk Commodity Rankings photos
Winners of the 2013 Risk and Energy Risk Commodity Rankings were honoured at a cocktail reception in London on February 12. Here, we present the highlights
NWE power market coupling struck by delays
The European Union’s biggest power market coupling project to date has been beset by delays and will not now be be completed before the end of 2013. What is behind the setbacks and what do they mean for continuing efforts to forge a pan-European…
'Half dead' EUA market hit by political uncertainty
Uncertainty over a plan to postpone sales of EUAs is contributing to stalling prices and reduced liquidity
Hunter ruling may slow Ferc’s anti-manipulation push
A court decides the US Federal Energy Regulatory Commission overstepped its authority in trying to prosecute manipulation in natural gas futures - a ruling with implications for other cases
Turning Points: Bill Perkins, Skylar Capital Management
Bill Perkins, founder of Skylar Capital Management, sees opportunities in US natural gas markets, even as depressed prices and low volatility prompt other traders to pull back. Alexander Osipovich reports
TNK-BP saga raises questions about BP's handling of political risk
Following a series of bitter spats with its Russian partners, oil major BP exited its Moscow-based joint venture, TNK-BP, in March. Market participants say the oil major’s experience holds lessons for other firms attempting to grapple with political risk…
NGL hedging takes off amid shale gas boom
US production of natural gas liquids (NGLs) has surged in recent years, causing NGL derivatives trading to expand as market participants hedge more of their output. But the market for NGL risk management products remains a work in progress, finds…
Asian refinery activity boosts oil derivatives trading
The growing market clout of refiners in Asia is giving the region a healthy boost in trading activity for derivatives linked to oil and other refined products. With local refining capacity set to grow, the trend looks likely to continue – a development…
Financial transaction tax could raise energy company hedging costs
FTT will increase hedging costs for energy companies and deter them from trading with financial counterparties, firms say