
Sempra buys CMS' gas trading business
Earlier this month, CMS said it was considering exiting the energy trading business after it found that round-trip trades were undertaken by the company to raise CMS marketing, services and trading's profile with existing and potential clients. The Securities and Exchange Commission, US Department of Justice, the Commodity Futures Trading Commission and the Federal Energy Regulatory Commission are currently investigating CMS' round-trip trades. Round-trip trades take place when two parties buy and sell contracts at the same price to inflate the size of their trading books.
CMS also has a sizeable power trading business, which is rumoured to be on the market. The Sempra spokesman would not comment on whether the company was bidding for that part of the CMS business, and CMS was not immediately available for comment.
In January, Sempra acquired Enron Metals, then one of the leading metals trader on the London Metals Exchange, in a $145 million cash deal.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Commodities
Risk management
Nasdaq whacked with $36 million fine over Aas default
Swedish regulator’s fine poses serious questions over default management and margining, while providing few answers
Receive this by email