Risk management
Climate change: FSA warns of risk, predicts opportunities
The Financial Services Authority (FSA) has stated in its Financial Risk Outlook 2007 report that climate change poses “considerable risks and challenges to the financial sector”.
Compliance solutions
Compliance with regulations such as Sarbanes-Oxley and Mifid is putting an increasing burden on energy-trading firms. Roderick Bruce looks at ways of overcoming the latest regulatory hurdles
APM gains first owner in western US
ACES Power Marketing (APM), a wholesale energy risk management and transaction execution service company, has gained its first owner in the western US, as it continues to expand its service base in California and the west.
New Cargill subsidiary to develop ethanol plants
Newly formed company Emerald Renewable Energy has revealed plans to develop four 100-million gallon per year ethanol plants in the corn-belt area of the Midwestern US.
EC takes firm line on emission allowances
As Phase II of the EU ETS comes in to effect, the EC has slashed the national allocation plans of more than ten member states, writes Oliver Holtaway
Correlation and credit VAR
Navneet Arora and Shisheng Qu show that credit VAR in commodity trading is affected not only by the inherent credit risks of counterparties, but also by various correlations among counterparties and between counterparties and commodity prices
In defence of VAR
High profile losses such as those at hedge fund Amaranth last year had people questioning risk management tools, particularly value-at-risk. But Chris Schlegel and Andrew Kosnaski believe VAR would have given adequate signals to traders in the volatile…
Head gas trader quits JPMorgan
The head natural gas trader for JPMorgan has resigned after being asked to leave the investment bank, sources close to the situation said Friday.
CBOT launches OTC ethanol contracts
Hot on the heels of its benchmark ethanol futures contract, the Chicago Board of Trade has unveiled plans for two new over-the-counter (OTC) Ethanol Calendar Swap contracts.
GE Energy to auction extra capacity
GE Energy Financial Services has announced its plan to auction the extra capacity created by a project it says will bolster the constrained electricity transmission grid serving New York City.
Western congestion
Despite huge strides to improve power transmission efficiency in California since 2001, the region is still flagged a 'critical congestion area' by the US Department of Energy. Neil O'Hara looks at the state of play
Future imperfect
Hedging physical deals with derivatives may be active risk management, but if the physical contract is breached, it can result in unnecessary losses. Andrew Meads looks at whether the innocent party can recover these losses
EU proposals to heighten competition and risk in the energy sector
The European Commission’s energy policy review, an ongoing evaluation of the energy sector which is likely to lead to new regulation regarding competition, could have significant implications for the risk profile of the European utility sector, says a…
SG, Rhodia launch emissions company
Société Générale and Rhodia Energy Services, a global specialty chemicals company, have formed a joint venture company to trade carbon.
DME reveals trading platform details
Energy futures exchange the Dubai Mercantile Exchange (DME), due to launch in the fourth quarter of this year, has unveiled details of its trading platform.
Surveying risk management
How is risk management viewed in your company? Are there risks you would like to measure but don''t? Which methodologies are most commonly used? What should the discipline tackle next? Our latest survey reveals all