Operational risk
IT heads of energy trading firms wrestle with budget cuts
Migration to cloud-based solutions considered as budgets fall 20–25% in 2016
Energy Risk Commodity Rankings 2016 photos
The winners of Energy Risk’s Commodity Rankings were honoured at London’s Le Meridian Piccadilly hotel in February
Energy Risk Software Rankings 2016
OpenLink voted best overall ETRM platform in annual survey of favourite vendors, implementation specialists, data providers and data managers
Falling budgets are top IT worry for energy firms
Tech spending by energy trading companies is set to plummet in 2016, survey finds
Phibro CEO eyes opportunities in banks’ retreat from energy
Former Morgan Stanley commodities chief Simon Greeenshields revives famed trading firm
How to get maximum value from power plant hedging
It is common practice to delta hedge, ie re-hedge over time, a fuel-fired power plant’s production. Operators switch hedges from yearly to quarterly and monthly forwards as they become more liquid. Marco Miarelli and Margherita Grasso extend the existing…
Seeking a systemic role
By overhauling old practices and creating a dynamic new culture, Banca IMI hopes to place itself at the centre of the energy trading system. Stefano Rivellini, global head of commodity sales, explains how, by investing heavily in the physical energy…
Axpo continues to build out US trading business
Other moves at BNP Paribas, Castleton, Elliott Management and Koch
EC sides with big energy companies in Mifid II spat
European Commission urges Esma to restore ‘capital employed’ test, citing concerns that asset-heavy energy companies and industrials may be caught in new regulations
Technology and regulation
Energy Risk, in association with OpenLink, presents a summary of a technology and regulation breakfast briefing held recently in London. The invitation-only event convened heads of regulation and compliance, chief technology officers, consultants and…
EC seeks redo of controversial Mifid II commodity provisions
European Commission demands revisions to draft Mifid II rules on ancillary exemption and position limits that had proved contentious for EU energy firms
Spot market for Asian LNG gaining momentum, traders say
Changing market fundamentals are expected to transform the way LNG is traded in Asia in the next several years, fuelling the emergence of a regional spot index and derivatives market
EU position limits pose headaches for national regulators
Proposed Mifid II limits on thousands of commodity contracts worry some officials
The shale revolution devours its children
After a few years of irrational exuberance, US oil drillers are feeling the pain
SGX hopes to shake up LNG market with new index
Asian LNG traders voice cautious optimism about ‘Singapore Sling’ spot-market index and derivatives contracts
Quant Ideas: How VAR can add value to energy market analysis
Using traditional financial tools such as value-at-risk can improve market risk analysis in the energy sector
Commodity hedge funds hope for rebound after 2015 rout
As ranks of commodity funds thin, survivors say investor interest is starting to pick up
OTC trading will live on, SG’s top US commodity trader says
Corporates still need banks for complex, structured deals, says Koppel
Hedge fund Millennium expands in energy trading
Other hires at Noble Group, JP Morgan and Mercuria
EU capital rules for energy traders not as bad as feared – PwC
Commodity trading firms can slash Mifid II capital charges by 40% through optimisation of derivatives portfolios and application of new Basel rules, report finds
Florida utilities’ $6bn hedging loss spurs public backlash
Firms face heat over out-of-the-money natural gas hedge transactions
New EU market abuse rules worry energy traders
Ban on insider trading in commodities seen as “very tricky”
Energy industry blasts ‘unusable’ CFTC commodity swap data
Vast variety of contracts, lack of coordination by SDRs led to reporting debacle
To assess liquidity risk, one must ask the right questions
A mathematician’s insight during World War II can help guide risk managers today