Market risk
Commodities correlation with equities, bonds - how long will it last?
Correlations between commodities and other asset classes have risen sharply over the past three years, but investors and academics are divided over the cause, and the outlook for diversification strategies going forward. David Wigan reports
Trading positions: March 2012
Energy Risk catches up with the latest appointments, promotions and departures in global commodity markets
Oil analysts' 2012 price forecasts up slightly on 2011 average
Geopolitical tension is propping up the oil market, even as a shaky global economy threatens to sap demand. Analysts offer Alexander Osipovich their views on oil prices in 2012
Seeking opportunities in coal trading
Coal prices are expected to have better support this year than last, but trading opportunities will lie in relative-value strategies, say market experts. Jay Maroo reports
Fuel oil prices seen remaining high
Prices for fuel oil, historically one of the least profitable parts of the crude barrel, are close to all-time highs.
Aviation allowances begin trading under EU ETS but outlook mixed
Carbon market analysts are cautious about the potential introduction of a range of European aviation allowances, which will have far-reaching implications for the market, finds Gillian Carr
Singapore commodity derivatives regulation set for overhaul
Financial authorities in Singapore have recommended consolidating the oversight of all commodity derivatives and futures to one regulatory body, as part of a proposed broader move to regulate the country's derivatives market in line with international…
US energy firms fear Dodd-Frank ‘swap dealer’ definition as decision looms
The US Commodity Futures Trading Commission (CFTC) is approaching a key point in the process of writing rules to implement the Dodd-Frank financial reform bill: its final definition of the terms 'swap dealer' and 'major swap participant'. Energy firms…
Cutting edge: Valuation of spread commodity structures
In this paper, Dan Mahoney and Krzysztof Wolyniec show that in co-integrated (mean-reverting) futures markets, active dynamic hedging is required to realise the quadratic variation of the underlying spread process. Using static hedges/portfolios yields…
Refiners step up hedging activity
Refineries in Europe have stepped up their hedging activity in recent months as they take advantage of a recovery in margins, market participants say
IETA concern over set-aside implementation
The International Emissions Trading Association believes market credibility in the European Union Emissions Trading Scheme could come under threat if a set-aside scheme is implemented
Risk & Energy Risk – 2012 Commodity Rankings – energy
After a rollercoaster year in the markets, Morgan Stanley seized the top spot in the 2012 Risk and Energy Risk Commodity Rankings, while its traditional rival, Goldman Sachs, slipped to number two. Alexander Osipovich reports. With additional reporting…
Risk & Energy Risk Commodity Rankings 2012 - metals
In an environment of uncertainty for both prices and regulations, Société Générale Corporate & Investment Banking retains pole position in base metals, while UBS takes first place in precious metals. By Peter Madigan
Energy trading system provider Brady acquires Navita, Syseca
Technology provider Brady will be expanding its presence in energy trading and risk management technology through the purchase of Navita Systems and Syseca
Q&A – Ice Futures Europe’s David Peniket and Mike Davis
In the second part of Energy Risk’s series on the future for the exchange-traded energy markets, Ice Futures Europe’s David Peniket and Mike Davis talk to Pauline McCallion about the likely direction of the market in 2012 and beyond
European power market coupling marches on
Market coupling projects continue to spread across Europe, bringing the market closer to achieving a single power price – but challenges still lie ahead. In the first article in a series focusing on European power markets, Gillian Carr looks at the next…
US utilities face two crucial issues in 2012: Edison Electric Institute
Preserving the ability of electric utilities to use OTC derivatives for hedging purposes and maintaining low tax rates on dividends are two of the most pressing issues facing utilities in 2012 and it’s important regulators and utilities are on the same…
Credit rating agencies: what are the alternatives for energy markets?
Repeated stumbles by the credit rating agencies have led risk managers to explore new ways of assessing counterparties. Alexander Osipovich examines the alternatives
Is European shale a game-changer for the gas markets?
While shale gas has been a game-changer in the US markets, its impact has been more muted in Europe, with environmental concerns preventing fracking in several countries. Jay Maroo looks at the future of shale gas in Europe and asks how big an impact…
Trading positions - people moves in energy risk management
Energy Risk catches up with the latest appointments, promotions and departures in global commodity markets
Energy markets face huge change under Mifid II
Many exemptions that commodity firms took for granted under the old Mifid framework will no longer exist when Mifid II and Mifir come in to force. Ellen Davis reports
Managing geopolitical risk in energy markets
The increasing influence of geopolitical risk on energy markets is forcing risk managers to reassess their risk management strategies around such event-type risk, finds Gillian Carr
Turning points - Nord Pool Spot's Mikael Lundin
Nord Pool Spot’s chief executive, Mikael Lundin, talks to Gillian Carr about his wanderlust, the quest for greater power market integration in Europe and why everything is about people