Utilities
EU capital requirements worry commodity trading firms
The finalisation of Mifid II in Europe has rekindled a debate over whether commodity trading firms should be subject to capital requirements. Firms are lobbying strongly against the idea, but regulators and the European Commission will have the final say
Oil indexation battle continues despite oil collapse
Europe’s utilities are still pushing for hub-based natural gas prices amid the recent collapse of crude oil
US record-keeping rule hits commodity derivatives end-users
Changes to CFTC rules following the US Dodd-Frank Act are forcing end-users to retain piles of pre-trade communications and other business records. The commission has moved to relax the burden on end-users, but companies are still grumbling about the red…
EU ETS to become bigger priority for industrials
Back-loading and structural reforms to Europe’s carbon market are set to collide with a reduction in free allowances, making life tougher for the continent’s polluters. Market participants hope this will engender an increased focus on risk management and…
E.on Global Commodities CRO unfazed by renewables plan
David Port, CRO of E.on Global Commodities, has grappled with financial risk at several different types of trading firm. Now he faces another change, as E.on seeks to break itself into two
Low volatility boosts interest in coal derivatives
Rising activity at commodity trading houses and hedge funds is contributing to high trading volumes in coal derivatives, while some producers are also increasing their involvement in the market
Official support fails to help Japan LNG contract
The launch of a new forward contract linked to liquefied natural gas (LNG) had been welcomed by the Japanese government amid hopes it might help local buyers manage their risk. But the contract has failed to take off - a sign of the challenges involved…
The secrets of successful energy trading firms
The energy trading world has seen various companies come and go over the years, including utilities, commodity trading houses and banks. Some of those firms have proven to be phenomenally profitable, while others have not. What is the recipe for success?…
Utility firms struggle to fend off Emir clearing
Europe’s largest utilities are concerned at the prospect of having to clear all their over-the-counter derivatives trades under the European Market Infrastructure Regulation (Emir). But although there are options for avoiding clearing under Emir, whether…
Financial entity definition worries US utilities
US utilities fret their trading units could be classified as financial entities under Dodd-Frank, forcing them to clear all their OTC derivatives and face other regulatory requirements
Utilities face pressure to clear OTC derivatives
Utilities are trying to avoid OTC derivatives clearing under Emir, but industry observers say bank capital requirements and rules on non-cleared derivatives may yet force them to clear their trades
JP Morgan exits power markets with Mercuria deal
Electricity firms are gloomy about JP Morgan’s departure from power markets, saying trading houses and oil majors are not providing the same level of liquidity as banks once did
CFTC close to fixing Dodd-Frank commodity option woes
The Commodity Futures Trading Commission is said to be exploring solutions for the so-called 'seventh prong' problem created by its definition of a swap under the Dodd-Frank Act
European gas trading has bright future, panel says
Natural gas is staging a comeback in Europe after being squeezed out by coal during the past few years, according to a panel of market participants who spoke at Energy Risk Summit Europe
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 Risk Asia Risk Manager of the Year: GDF Suez Trading
GDF Suez Trading’s Asia-Pacific unit has expanded rapidly thanks to its understanding of the market and strong client support, but timing has also helped
Devil in the detail for Mexico power sector reform
The deregulation of Mexico’s state-dominated electricity sector is sparking enthusiasm among international energy firms eager for investment opportunities. But many challenges remain as regulators create the country’s new wholesale gas and power markets,…
Mexico to rein in CFE and Pemex market power
Regulators will not allow state-owned electricity and oil and gas companies to abuse their dominance and stifle private competition, says CRE commissioner
Technology special report
Derivatives trade reporting, CpML, and the increasing use of governance, risk and compliance software by utilities all feature in this exclusive special report by Energy Risk
Energy firms eye opportunities in Mexican power
International energy companies hope to prosper from Mexico's programme of energy reforms, which includes the creation of a wholesale spot market in electricity
GRC software makes inroads in US utility sector
A growing number of US utilities and power companies are acquiring governance, risk and compliance software to help them cope with the mounting burden of regulation, including stricter standards on grid reliability and cybersecurity. Alexander Osipovich…
CFTC quietly amassing data on natural gas swaps
Numerous energy companies have received special calls from the CFTC in the past year, say lawyers, but the reasons for the agency's interest remain murky
Power companies slam New England reliability plan
Electricity companies are criticising "unreasonable" and "discriminatory" measures designed to keep New England's lights on during the coming winter, arguing in favour of a longer-term fix
Energy firms fight for right to hedge at portfolio level
CFTC position limits rule could limit the ability of energy firms to hedge, unless they aggregate commodity derivatives positions held across disparate business units