Over-the-counter (OTC) derivatives
Energy companies facing ‘intrusive’ CFTC special calls
The US Commodity Futures Trading Commission is stepping up its market surveillance activities, issuing special calls to numerous firms that trade over-the-counter swaps. That is causing headaches for smaller energy companies tangled up in the dragnet…
OTC energy derivatives did not cause the crisis
Over-the-counter derivatives were blamed for the financial crisis, but now the conversation must turn to finding solutions, not apportioning guilt
Energy firms face Emir confirmation challenge
A looming deadline for confirming OTC derivatives is expected to cause problems for smaller energy firms, which may find themselves blocked from trading with bigger counterparties
Technology House of the Year: TriOptima
Emir and Dodd-Frank are pushing energy companies towards an increasing use of portfolio compression and reconciliation services – a trend that is benefiting TriOptima
CFTC no-action letter could end public utilities' hedging woes
CFTC exempts ‘utility operations-related swaps’ from contributing towards $25 million special entity threshold under Dodd-Frank
Looking back: Regulators try to slow down OTC juggernaut
Today, regulation is a fact of life for OTC commodity derivatives traders. But in April 1994, it was somewhat novel, as Energy Risk reported at the time
Looking back: Are banks coming back into OTC energy derivatives?
Banks have often stepped in and out of the OTC energy derivatives market. In this article from August 2001, Energy Risk reports on banks upping their activity
Trading OTC may be costlier than you think
Debate continues to rage about the merits of clearing, with some market observers arguing that the benefits of using central counterparties are outweighed by the precipitous costs involved. But such criticisms fail to take the full burden of over-the…
Oil market faces tight deadline for Ice Brent protocol
As Ice prepares to shift Brent expiry calendar on December 6, Isda releases protocol to enable orderly transition of OTC market
Energy Risk Europe: Questions over benefits of CVA for energy firms
Lack of credit team or CVA desk might make use of measure counterproductive, panellists worry
Power proves a tough choice for Australian regulators
Supervisors must decide whether to include electricity in derivatives reform despite high prices and industry opposition
Canadian regulators respond to energy firms’ concerns on derivatives
Updated OTC derivatives rules satisfy concerns of energy traders, but inconsistencies with Dodd-Frank remain
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
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…
Futurisation worries end-users of OTC energy derivatives
Regulation has caused much of the over-the-counter energy derivatives market to move to exchange-traded futures. While many market participants welcome the shift, derivatives end-users worry that it could harm their ability to hedge. Alexander Osipovich…
Applied risk management series: OTC commodity swaps valuation, hedging and trading
In this article, Carlos Blanco and Michael Pierce provide an overview of swap instruments and discuss the pricing, valuation, hedging and risk management of over-the-counter commodity swaps. They also comment on the expected ramifications of new…
Corporate statement: energycredit
David Carruthers, managing director of energycredit, a Temenos company, discusses the raft of new reforms and regulation either proposed or recently implemented on both sides of the Atlantic. He covers the steps being taken by firms to prepare for this …
Can the boutique energy brokerage survive Dodd-Frank?
The Dodd-Frank Act is set to drastically reshape the over-the-counter energy derivatives brokerage industry in the US, as small firms in particular are threatened with the loss of their independence. Alexander Osipovich finds out how brokers are coping…
Commodities market data increasingly key: market players
Inside Market Data's experts discuss the evolving market for commodities data sets in commodities webcast
Sponsored Q&A: BNP Paribas
Volatility and anticipated quantitative easing have left commodity players struggling to make sense of the markets. Frederic Hervouet, head of commodity derivatives for Asia at BNP Paribas in Singapore, sheds light on what we can expect from Asian…
Rule could make OTC-cleared energy contracts 'endangered species': O’Malia
CFTC commissioner renews support for over-the-counter energy clearing tool in the face of new Dodd-Frank rules that could affect operation
Shell Energy chief calls for regulatory data confidentiality rules
The confidentiality of energy trading data provided to regulators for market monitoring purposes continues to concern market players and regulators alike, after August leak by senator Sanders
EFETnet, DTCC to set up commodity derivatives repository
A partnership between EFETnet and DTCC aims to create a global commodity derivatives trade repository, which will provide regulators one point of contact for trade data
Trend towards in-house clearing could increase fees and admin
The LME is the latest exchange considering whether to build its own clearing business. If the trend continues, banks could face more fees and administration