Energy Risk/News
Natural gas storage swaps catch on
London-based GFI has brokered its first over-the-counter (OTC) swap based on US natural gas inventory data, between Houston-based hedge fund Centaurus and another unnamed hedge fund. Centaurus also traded a second such swap on the same day, with an…
Amerada Hess forms LNG division
US energy company Amerada Hess has formed a joint venture with an affiliate of New York-based Poten & Partners, to be known as Hess LNG. The joint venture will be based at Amerada's New York headquarters and will pursue investments in liquefied natural…
Nymex president to quit
Bo Collins, president of The New York Mercantile Exchange (Nymex), will leave the exchange at the end of this month. Nymex said the decision not to renew his contract was by made by "mutual agreement."
Baltic Exchange forms asset derivatives advisory group
The London-based Baltic Exchange has formed an independent advisory group to enhance the emerging market for ship vessel asset derivatives. The group consists of key users, derivative brokers and physical panellists and will act as an information…
Sempra secures credit facility; raises earnings guidance
San Diego-based Sempra Energy is in the process of securing a two-year line of credit with "major financial institutions" that will provide as much as $1 billion. The line of credit, which will be secured by certain trading company assets, will be used…
IPE puts back relaunch of power futures
London’s International Petroleum Exchange (IPE) has put back its relaunch date for UK electricity futures – it will now start listing them by the end of September. The exchange had originally intended to launch the contracts around the end of this month.
TXU and CSFB form energy trading company
Dallas-based TXU has entered into a joint partnership with Credit Suisse First Boston (CSFB) to create an independent entity to market and trade power, natural gas and other energy-related commodities in North America.
BoA’s head of energy trading lands at hedge fund
Julian Barrowcliffe, formerly global head of energy trading for Bank of America in New York, has joined Vega Asset Management – a New York-based hedge fund with $11 billion under management. In his new role Barrowcliffe will manage a commodities trading…
Mooney quits Trafigura to launch Merrill fund of funds
David Mooney, formerly head of power and gas trading at Trafigura in London, has left the Swiss commodity trading house to join Merrill Lynch. Mooney will join Merrill in mid-June as a managing director where he will be charged with evaluating commodity…
Wine bar hedges weather
UK-based Corney and Barrow Wine Bars has entered into a group wide weather derivative hedge with XL Trading Partners, the Connecticut-based weather risk management company.
Ofgem finds no evidence of market abuse
Britain’s Office of Gas and Electricity Markets (Ofgem) says it has found no evidence of market abuse following its probe into the high gas prices between September 2003 and October 2003, when wholesale spot prices rose by 80%.
CGE Power falls as banks demand cash
CGE Power, the bank consortium formed to acquire distressed UK power assets, has withdrawn offers totalling around £3 billion on 12 plants and ceased trading after proposals to acquire two key power plants were rejected by lenders, according to a…
KWI hires SVP of operations
KWI, the London-based provider of trading and risk management software for the energy industry, today announced the appointment of Alan Somerville as senior vice president (SVP) of operations.
Pressure group calls for debarment of Reliant’s US Dept of Defense contracts
Public Citizen, the Washington DC-based pressure group, has called for the debarment of Reliant Energy from its newly awarded $35.9 million electricity contract by the US Department of Defense while it is under federal indictment for its role in creating…
Nymex introduces trading in western electricity futures
The New York Mercantile Exchange (Nymex) is to introduce trading in four western electricity futures contracts, based on Dow Jones Electricity Indexes, on its ClearPort electronic platform beginning with the June 4 trading session, which starts at 3:15…
FOA close to releasing UK power trading guidelines
The UK Futures and Options Association (FOA) says it is close to releasing final drafts of guidelines on various areas of the UK power market. The problem areas identified by the FOA's Power Trading Forum (PTF) are reference pricing, credit risk…
Broker Prebon hires Innogy coal trader
London-based broker Prebon may have failed in its bid to lure three coal traders from fellow broker Icap, but it is continuing to build a coal team. In mid-May, Sharon Millar, who previously traded paper and physical coal at UK utility RWE Innogy, joined…
EU emissions trading to see moderate start, says survey
Companies expect emissions trading to experience a “moderate start” in the European Union (EU), before seeing a steady increase in volumes. This was the conclusion of a recent survey carried out by the Leipzig-based European Energy Exchange (EEX) and 3C,…
FEA unveils updated power exposure solution
Financial Engineering Associates (FEA), the Berkeley-based subsidiary of technology company Barra, today unveiled its @Energy/Power Generation 2.0 solution for power plant optimisation, risk exposure assessment and valuation
Liquidity, not regulation, is key to avoid manipulation, says CFTC
Regulators should avoid the temptation to implement over zealous regulation of the energy derivatives market, and instead encourage the development of liquidity, if market manipulation is to be avoided. That was the message delivered by Sharon Brown…
European power trading on the up, says Prospex report
European electricity trading volumes increased in 2003, with Germany seeing the biggest volumes, overtaking the Nordic region for the first time. So says a new report from London-based Prospex Research, European Power Trading 2004 .
S&P places focus on energy merchant liquidity risk
Rating agency Standard & Poor’s is to issue new liquidity adequacy guidelines for US energy merchants, which are particularly vulnerable to large and sudden liquidity demands related to collateral calls.
Energy clearing in Catch 22 situation, says Fitch
Denise Furey, New York-based senior director of global power at rating agency Fitch believes that the clearing of OTC energy derivative contracts is in something of a ‘Catch 22’ predicament. “We need standardization of contract documentation to get to…
GL Trade sets up gateway to EEX and signs up Calyon Financial
GL Trade, a Paris-based provider of financial data, clearing, trading and settlement soulutions, has set up a gateway to the Leipzig-based European Energy Exchange. Global derivatives broker Calyon Financial, formerly Carr Futures, has taken up this…