Operational risk
Package deals
Banks have been choosing off-the-shelf fully integrated systems for energy trading and risk management. But some feel the available software still falls short
Rights and resources
Doing business in a country with a poor human rights record can be costly, thanks to the changing landscape of corporate liability and human rights. Maria Kielmas reports
OpenLink, Triple Point sign more bank clients
Rival US-based energy trading software suppliers OpenLink and Triple Point Technology (TPT) both signed big new clients this year, increasing their dominance of the energy software market for the banking sector.
Duke Energy to adopt Cinergy trading approach
Following the transfer of its energy derivatives portfolio to Barclays Capital, Duke Energy is targeting a lower-risk trading strategy pioneered by Cinergy, the company it is buying
New GlobalView head makes u-turns on hubs
Contrary to reports in September, new GlobalView chief Steve Gott says he remains committed to the Energy Data Hub and ConfirmHub ventures. Following a management overhaul, it seems it is business as usual
To build or not to build
Europe needs more power. But a lack of clear pricing signals and the unknown impact of new environmental legislation is making risk forecasting difficult, and could hinder new plant construction
BarCap takes on Duke trading book
Barclays Capital will acquire and manage the bulk of Duke Energy North America’s (DENA) power and gas derivatives contracts, as part of parent Duke Energy Corp’s takeover of US utility Cinergy.
Refco raises further concerns
As the Refco bankruptcy case rumbles on, investors are wondering if more could have been done to prevent it, and in future, are likely to seek better assurances over the security of funds in segregated customer accounts
Congestion charges
As the US' premier regional transmission organisation, PJM Interconnection's pricing and transmission congestion models must be foolproof. Sandy Fielden describes how they work and the associated risk management mechanisms available to participants
Francis Van Der Velde
Francis Van Der Velde of Brussels-based Fuel Purchasing & Consulting is more aware than most of the pain airlines are suffering
Marginal improvements
Despite reduced production in the wake of hurricane Katrina, no new US refineries are in the pipeline. Instead, refiners are operating at full tilt as they come under pressure to expand capacity. By Catherine Lacoursiere
Shelter from the storm
Energy companies are showing increased interest in hurricane derivatives, a specialist product that can provide an additional layer of protection on top of insurance. Joe Marsh reports
Finance and faith
Islamic shari’a law may prohibit interest, but far from discouraging investment, shari’a-compliant structured project finance looks set to grow – particularly in the energy arena, as Maria Kielmas reports
Taking the screen test
Screen trading is spreading faster than ever in the energy markets and market dynamics are changing as a result. Do interdealer brokers in the market see this advance as a threat or an opportunity? Stella Farrington finds out
Raising the standard
Growth in energy trading has led to a need for better standardisation of contracts and integration of exchanges and trading hubs. But more needs to be done to simplify and streamline the trading process, says Wolfgang Ferse
LCH.Clearnet launches OTC clearing for freight derivatives
LCH.Clearnet has launched an OTC clearing service for the forward freight agreements (FFAs).
The scandal in Sudan
A fragile peace may at last have come to Sudan after 21years of civil war, but a bitter and unresolved dispute over oil exploration acreage in the south of the country couldendanger that peace. Report by Maria Kielmas
● Accounting standards ● Nordic energy
This month’s Energy Risk debate covers the topical issues of accounting standards, followed by an expert question and answer panel on the influential Nordic energy region
Getting a head-start
North American Energy Credit and Clearing may have gained an advantage by being the first to clear over-the-counter physical electricity contracts. But it still has to prove that it is reliable and efficient. Joe Marsh reports
Evolution expands US west coast emissions brokerage ops
Energy broker Evolution Markets has expanded its environmental market operations for the western US with the hire of Laura Meadors, an expert in environmental market design and analysis. She is based in the San Francisco office, which opened in February…
Pricing the weather
Pricing weather derivatives is different from valuing other derivatives contracts – actuarial methods play a greater role. Steve Jewson looks at the varied approaches available
Pipelines and politics
The latest in a long line of disputes over natural gas supplies from Russia is raising concern among utility customers and investors that future supplies to the West may be disrupted. But is this a long-term problem? Oliver Holtaway reports
Delivering the goods
There’s huge scope for growth in the freight derivatives market, but to attract more players, existing participants need to adopt more innovative and sophisticated trading practices, participants say. Stella Farrington reports