News/Commodities
Credit Lyonnais to trade weather risk
Credit Lyonnais has set up a weather derivatives unit, adding to the recent thrust of new entrants into the embryonic market. Peter Brewer, who joins Credit Lyonnais from US energy firm Aquila, will head the London-based weather desk.
JP Morgan Chase may exit European energy business
JP Morgan Chase has lost nine of its energy derivatives traders, fuelling speculation that the US investment bank may close its energy operations, at least in Europe, following widespread cost-cutting and restructuring.
UK and Danish greenhouse gas allowance schemes see first swap
Anglo-Dutch energy major Royal Dutch/Shell Group and Danish electricity supplier Elsam completed the first greenhouse gas (GHG) emissions swap between government-backed allowance schemes on May 7.
No “new role” for RCC in Japanese NPL clean-up, claims ING
The decision by Mitsubishi Tokyo Financial (MTFG) to step up its sell-off of bad loans to the Resolution and Collection Corporation (RCC) will have little tangible effect on cleaning up Japanese financial institutions’ burgeoning non-performing loans …
London restaurant buys weather derivatives
A London restaurant that sees fewer customers on cold days is using derivatives to protect against financial loss resulting from unfavourable weather.
FSA retreats on insurer credit risk transfer concerns
The UK’s Financial Services Authority today said it generally has faith in insurers that use credit derivatives as a means for risk transfer. This contradicts previous statements by FSA chairman Howard Davies, who signalled his desire to clamp down on…
Fresh calls for OTC energy market regulation
A broad-based coalition of natural gas producers, service companies, consumer groups and utilities is set to call on the US Congress and federal regulatory agencies to regulate the over-the-counter (OTC) energy derivatives market.
UK’s controversial emissions market sees first trades
The UK’s new government-sponsored greenhouse gas emission trading scheme (ETS) has seen its first trades since its launch on February 2. An anonymous deal was traded yesterday between a global oil major and a large industrial company. London-based staff…
Crude futures hit six-month highs
Crude oil futures on the New York Mercantile Exchange (Nymex) hit six month highs of $25.61 a barrel (bbl) on March 21 as a combination of rising demand, continued supply curbs and fears of US action against Iraq drove prices higher.
Credit derivatives majors form data alliance
Goldman Sachs, Deutsche Bank and JP Morgan Chase have launched a credit derivatives market data scrubbing and sharing project meant to head off disputes among market participants over the terms of their contracts.
Prebon backs coal growth
Prebon Energy, the New Jersey brokerage firm that specialises in physical and financial energy products, has opened a coal desk.
BNL plans weather desk for Italy
Rome-based Banca Nazionale del Lavoro (BNL) is planning to set up a weather derivatives desk, which could add to the recent thrust of new players in the weather risk market. BNL hopes to establish the desk, specifically for the Italian market, by the…
BHP Billiton buys into weatherXchange
Anglo-Australian mining giant BHP Billiton has bought a 7.5% stake in weatherXchange, an online weather derivatives data service, set up by the UK’s Meteorological Office and London-based Umbrella Brokers in June last year. BHP Billiton has an option to…
GFInet to unleash derivatives market data feed
New York-based interdealer broker GFInet plans to offer market data feeds for the first time, and is in the process of selecting a feed vendor.