Over-the-counter (OTC) derivatives
Lacima’s models stand the test of major risk events
Lacima’s consistent approach between trading and risk has allowed it to dominate the enterprise risk software analytics and metrics categories for nearly a decade
‘Wrong type of liquidity’ spells trouble for energy hedges
Cyclical lull conceals structural shift as liquidity becomes shorter-dated and more flighty
Hidden risks for corporates in renewable energy PPAs
Buyers face load, covariance and basis risks in typical agreements
Plastics hedging rising amid US chemical industry boom
Interest in plastics derivatives is rising as a result of changing market dynamics, but major obstacles still limit its growth potential, finds Stella Farrington
UK resists expansive view of Mifid II position limits
FCA suggests limits shouldn’t apply to OTC trades between non-EU entities
Innovation of the year: Societe Generale
French bank adds OTC energy derivatives to its e-trading platform
Mifid II transparency rules shake up bank commodity desks
Role of voice set to dwindle, while e-trading sparks worries of predatory algos
Banks push e-trading of OTC energy derivatives
Goldman Sachs, JP Morgan and Societe Generale lead race to add oil and gas to single-dealer platforms
CFTC takes steps to clean up ‘garbage’ swaps data
Attempts to further standardise swaps in new data reporting proposals are a source of frustration for market participants
Few commodity traders saw improved liquidity in 2015 – poll
Three-quarters of traders surveyed say liquidity in OTC commmodity derivatives held steady or declined last year, while 25% saw gains
End-user hedging: FMC’s natural gas hedges show benefits of OTC trading
Using a case study of Philadelphia-based FMC Corporation’s natural gas hedges, Ivilina Popova of Texas State University and Betty Simkins of Oklahoma State University show that over-the-counter derivatives are more efficient and effective compared with…
US propane retailer hedges to offer customers stable prices
Keeping Michigan residents warm for a reasonable price is the central mission of Grand Rapids-based propane and fuels retailer Crystal Flash. But it couldn't be done without hedging and prudent risk management
Italian refiner seeks boost from supply and trading unit
Italy’s Saras is taking advantage of a well-supplied crude market and the flexibility of its Sardinia refinery to seek out trading opportunities, but challenges loom in the form of onerous financial regulations and the structural difficulties of Europe’s…
Mifid II adjustments fail to ease energy firms' worries
Energy firms such as utilities are fighting hard to avoid being regulated under Mifid II and having to comply with onerous EU financial rules. But despite last-minute changes to regulators’ proposed technical standards, the chances of escape appear slim
Massad says CFTC is willing to hear energy firms’ concerns
In an exclusive interview at Energy Risk Summit USA in May, CFTC chairman Timothy Massad chose to highlight the agency’s willingness to hear industry arguments on issues such as trade reporting, position limits and record-keeping
CFTC’s Massad woos energy firms with Dodd-Frank fixes
US Commodity Futures Trading Commission chairman Timothy Massad stresses the agency will smooth out flaws in the agency's Dodd-Frank Act rules, but sidesteps a question over whether they were rushed
CFTC sent special calls by mistake, Giancarlo says
Hundreds of special call letters were sent to end-users of over-the-counter derivatives in error, CFTC commissioner Chris Giancarlo says
EU commodity position limits too cumbersome, firms say
Firms argue that EU commodity derivatives position limit proposals under Mifid II are bad for end-users and the energy market
Republicans in Congress set to push Dodd-Frank fixes
With Republicans now in control of both houses of the US Congress, energy firms and other derivatives end-users are hoping for new legislation to ease some of the more troublesome aspects of the US Dodd-Frank Act. Their optimism is justified - up to a…
Oil, weather and Ukraine boost European gas volumes
2014 saw rising activity in Europe's exchange-traded and OTC gas markets
CFTC chairman offers hope to derivatives end-users
Timothy Massad, the new chairman of the US Commodity Futures Trading Commission, seems to be steering the agency towards a more deliberate and pragmatic approach to Dodd-Frank regulation