Energy Risk - February 2014
Articles in this issue
US power firms slam ISO New England over market ‘flaws’
Winter reliability at risk due to problems with real-time pricing, market participants warn
Crude-by-rail data gains in value for traders
As an increasing volume of crude oil is transported via North America’s railroads, market participants are growing hungry for data and market intelligence on crude-by-rail. Such insight had been in short supply, until recently. Alexander Osipovich reports
EMR heralds greater government intervention in UK power
UK Electricity Market Reform, which is set to come into effect in July, will introduce a level of government intervention not seen in the country’s power market since the early 1990s. The impact will be felt by UK power firms and could ripple across…
Resist the rise of the risk management machines
Overreliance on modern risk management systems, and metrics such as value-at-risk, can blind firms to tectonic structural market shifts. To help alleviate this problem, the use of human judgement and intervention is required, argues Vincent Kaminski
Looking back: Are banks coming back into OTC energy derivatives?
Banks have often stepped in and out of the OTC energy derivatives market. In this article from August 2001, Energy Risk reports on banks upping their activity
Concerns remain on plans to bolster UK renewables via CFDs
The UK government hopes to deliver a healthy boost to low-carbon generation through a market for contracts-for-difference. While electricity market participants are upbeat about the proposals, there are lingering concerns about how effective it will be…
Capacity market set to provide UK's back-up plan
An important part of UK Electricity Market Reform is the launch of a capacity market, with the first auction due to take place in December 2014. Despite initial opposition, market participants have gradually come around to the idea. Stella Farrington…
Risk & Energy Risk Commodity Rankings 2014 – energy
The past 12 months proved tough for energy dealers, with low volatility, poor liquidity and sluggish levels of client activity. Given this, some banks decided to scale back their commitment to the market – a trend that is reflected in this year’s results…
The 10 biggest energy risk management disasters of the past 20 years
The history of energy trading is littered with losses, bankruptcies and other misfortunes that now serve as cautionary tales. Alexander Osipovich looks back at the biggest energy risk management disasters of the past two decades and how they reshaped the…
Deutsche Bank makes commodities cuts
Goldman names new commodities heads; BAML exits European power and gas; GDF Suez promotes Moorooven; Newedge names commodity heads; JP Morgan hires EDF power trader
Lynton Jones laments IPE's hesitation over electronic trading
Lynton Jones, the IPE’s former chief executive, tried hard to promote electronic trading in Brent futures. But those efforts met with strong resistance, he tells Mark Pengelly
Commodity position limits may make hedgers think twice
Dodd-Frank and Mifid II position limits could cause firms to withdraw from commodity derivatives
Cutting edge: Modelling dependence of price spikes in Australian electricity markets
The deregulation of Australian electricity markets has brought several challenges, including the possibility of price spikes, which expose market participants to significant risks. As Adebayo Aderounmu and Rodney Wolff outline, these spikes are hard to…
Risk & Energy Risk Commodity Rankings 2014 – metals
For metals, the past 12 months were marked by plummeting gold prices, directionless markets in base metals and heated rows over the London Metal Exchange’s warehousing system. Despite this, the top dealers and brokers in this year’s rankings are largely…
UK power special report
UK Electricity Market Reform will have major ramifications for power market participants. Stella Farrington explores the likely impact