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Foreign exchange

Reliant bows out of energy trading

Houston-based Reliant Energy has exited the energy derivatives trading market as a result of an $80 million trading loss it suffered at the end of February.

Vol surge expected from Eastern Europe

Political events in countries slated to join the European Union and the euro are set to trigger a wave of foreign exchange volatility in emerging European countries, market participants said.

What's coming, and when

This article covers significant dates over the next couple of months from an international, European, UK and US regulatory perspective.

Risk ’s quant of the year backs Buffett

Peter Carr, recipient of Risk 's 2003 quant of the year award, said that in a [hypothetical] argument between quants convinced of the infallibility of their models and derivatives sceptics such as Warren Buffett, he would probably side with Buffett.

Greenspan defends role of derivatives

In a speech today, Alan Greenspan, chairman of the US Federal Reserve, defended the use of derivatives as hedging tools, especially credit derivatives. His comments come in the wake of Warren Buffett’s criticism of derivatives as potential “time bombs”.

SPV Ruling: Counting the cost

The recent crop of high-profile accountancy scandals has forced the US accounting regulator to clamp down on the 'creative' use of special purpose vehicles to shift liabilities off balance sheet. Saskia Scholtes investigates the ramifications for firms…

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