Policy risk
TNK-BP saga raises questions about BP's handling of political risk
Following a series of bitter spats with its Russian partners, oil major BP exited its Moscow-based joint venture, TNK-BP, in March. Market participants say the oil major’s experience holds lessons for other firms attempting to grapple with political risk…
Financial transaction tax could raise energy company hedging costs
FTT will increase hedging costs for energy companies and deter them from trading with financial counterparties, firms say
Energy Risk Software Survey and Rankings 2013
Energy trading and risk management (ETRM) software budgets are declining, just as new regulatory requirements are putting more demand on ETRM platforms than in previous years, according to the results of Energy Risk’s 2013 Software Survey and Rankings…
EU ETS faces back-loading test
Dismal prices in the European Union Emissions Trading System are causing interest in the world’s largest emissions market to wither away. While the European Commission has come up with a plan to put it on life support, analysts say there is a 50:50…
Energy firms scramble to avoid swap dealer label
Switching to futures and rewriting corporate websites could help reluctant energy companies avoid having to register as swap dealers under Dodd-Frank, reports Alexander Osipovich
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…
Energy firms increasingly using stress tests to cope with regulatory change
Utilities and other energy firms are working hard to refine and enhance the scenarios they use for stress testing. Given recent market events, the impact of regulatory change and large-scale liquidity crises are taking on an increasingly important role…
PRAs push back against potential EU rules on benchmarks
Price reporting agencies among the most vehement critics of potential EU rules on benchmark indexes
'Uneconomic trading' at issue in Barclays power dispute
Barclays seeks to defend itself against power market manipulation allegations by contesting regulator’s pursuit of uneconomic trading
Turning points: Gazprom M&T's Rob Pringle
European energy firms are pooling IT skills in a forum aimed at tackling regulatory challenges. Gazprom Marketing & Trading’s Rob Pringle, a founding member, speaks to Gillian Carr
Academic battle rages over oil speculation, high prices and volatility
In spite of attempts to impose commodity position limits in Europe and the US, a fierce battle continues to rage over whether speculation in oil is responsible for high prices and volatility. David Wigan reviews some of the arguments
Japan faces soaring cost of ditching nuclear power
After the Fukushima nuclear disaster, Japan announced ambitions to phase out the use of nuclear generation. But faced with bulging energy imports and high prices, official enthusiasm for the plan has waned. By David Hayes
European energy firms struggle with unclear Remit rules
Remit is ushering in an array of new reporting requirements designed to curb abuse in European energy markets. But firms are struggling to make sense of the requirements. Gillian Carr reports
Carbon price sinks as EU vote is delayed
The European Commission is proposing to cut the supply of European Union Allowances to bolster prices, but delays to the plan are causing prices to sink, reports Gillian Carr
Ferc cracks down on power market manipulation
The US Federal Energy Regulatory Commission has declared war on power market abuse, targeting allegations of manipulation by firms including Barclays, Constellation Energy and Deutsche Bank. Further investigations are expected to follow as the agency…
California carbon market faces challenges
California’s first auction for carbon allowances on November 14 was hailed as a success by state officials. But the fledgling market must survive a barrage of legal challenges before it can truly take off. Alexander Osipovich reports
Energy Risk Europe: Firms weigh up data management systems for regulation
Sapient Global Markets, Vitol and Gazprom Marketing & Trading discuss how firms can prepare data management systems for regulatory requirements
JP Morgan deserved “a very severe penalty”, says Ferc chairman
Tougher enforcement stance is justified and paying dividends, claims Ferc chairman
Firms shy away from public utilities despite CFTC relief
No-action letter not enough to convince counterparties to trade with public utilities
CFTC clarification on physical gas deals welcomed
CFTC answers concerns over treatment of physical gas storage and transportation agreements under Dodd-Frank
Impact on EUAs from back-loading will be muted, say analysts
European Commission proposes back-loading a larger volume of European Union Allowances than expected, yet analysts downplay price impact
Uncleared margin rules threaten E&P hedging
Exploration and production companies can find it difficult to satisfy collateral demands when looking to hedge their output using derivatives. Now, Dodd-Frank threatens to make this even harder with margin requirements for uncleared trades. Alexander…
Commodity position limits cause Mifid II confusion
Mifid II is set to impose position limits for commodity derivatives, but recent drafts are sowing confusion over who will be responsible for setting them, writes Jay Maroo
Lawsuit threats cloud California cap-and-trade scheme
California is set to launch the world’s second-largest carbon market, but threats of litigation have kept many potential market participants sitting on the sidelines