Energy
Risk milestones
Anniversaries inevitably inspire an urge to reminisce. David Rowe lists several important public milestones and one personal milestone in the development of financial risk management
Riding the storm
Germany's national carrier, Lufthansa, was hit hard by the September 11 terrorist attacks. The airline's chief risk officer talks to Gareth Gore about how the shock event brought about sweeping changes to its liquidity risk management
Analysts question WTI/Brent spread
The spread between West Texas Intermediate (WTI) and ICE Brent has narrowed significantly, hitting $0.95 this week from a high of $7.34 in mid-May.
Liffe to launch time pro-rata algorithm for STIR futures
Euronext’s derivatives business Liffe has developed a new trade matching algorithm for its short term interest rate (STIR) futures contracts, which will include a time element in the allocation process.
EDF and RasGas sign LNG supply deal
Utility EDF, through its subsidiary EDF Trading, has signed a liquefied natural gas (LNG) supply contract with Qatari company Ras Laffan Liquefied Natural Gas (RasGas).
Unthinkably favourable
Imagination in stress testing demands unorthodox thinking, as even seemingly favourable events can have negative consequences. In the case of the oil markets, this means stress testing for a fall, as well as a rise, in oil prices, argues David Rowe
In the shadows
Booming over-the-counter derivatives markets may be generating huge revenues for dealers, but they are also casting a worrying shadow over trading book profits in the form of counterparty credit risk. Are contingent credit default swaps the answer?
Amaranth trades “altered natural gas prices.”
Energy hedge fund Amaranth Advisors exploited legal loopholes and altered natural gas prices through “excessive speculation” before its 2006 implosion, a US senate investigation has found.
RBC offers principal protected note linked to commodities in Canada
RBC in Canada has launched a 100% principal protected note linked to a basket of commodities that includes Brent crude oil, copper, nickel and zinc. The five-year RBC Principal Protected Commodity Booster Notes offers 50% return at maturity if the…
Ethanol in “hangover mode” as sector looks to restructure
The unbridled optimism which spurred the ethanol markets in 2006 has been replaced by fears over the sustainability of some corn-based projects, according analysts speaking at this week’s Renewable Energy Finance Forum in New York.
Spectron trades first OTC REC option
Energy broker Spectron has brokered the first over-the-counter option on US renewable energy credits (RECs)
GlobalView to offer SSY tanker data
Tanker data from shipbroker Simpson, Spence & Young (SSY) will become available through data management provider GlobalView’s MarketView solution.
Nymex reportedly in sale talks
The New York Mercantile Exchange (Nymex), the world's leading energy exchange, is reportedly in talks regarding a possible sale to NYSE Euronext, Deutsche Boerse AG or Chicago Mercantile Exchange Holdings Inc.
HSBC links to S&P CTI
HSBC has launched a range of investment products linked to the Standard & Poor’s Commodity Trends Indicator (S&P CTI), an index that delivers long and short exposure to commodity markets. The products, available to both institutional and retail…
Hedge fund strategist heralds a new world order in the commodity markets
There has been a seismic shift in the fundamentals that drive the commodity markets, according to Colin Waugh, head of strategy and research at Galtere International Fund, a $1 billion New York-based global macro hedge fund.
Macquarie and Nomura form commodity alliance
Australia's Macquarie Bank and Nomura Securities, a Japanese securities and investment banking company, have agreed to establish a business alliance in commodity derivatives, which will provide commodity derivative and commodity-based investor products…
ECX and ICE launch CER futures contract
The European Climate Exchange (ECX) and ICE Futures today announced the launch of CER (certified emissions reduction) futures and options contracts, subject to regulatory approval.
JPMorgan to expand commodity trading presence
JPMorgan plans to increase its global commodity trading staff by more than 30% within 12 months.
Macquarie and Nomura form commodity alliance
Macquarie Bank and Nomura Securities, a Japanese securities and investment banking company, have agreed to establish a business alliance in commodity derivatives, which will provide commodity derivative and commodity-based investor products to customers…
Desjardins offers natural resource diversity
Desjardins Group, the Canadian cooperative financial group with more than $135 billion of assets under management (as at December 31, 2006), will launch the Natural Resource Guaranteed Investment (NRGI) on June 11.
Virgin Trains to use biofuel
Greenergy Fuels, the UK’s leading independent fuels supplier, will partner with Virgin Trains to supply up to 27,000 litres per week of a new B20 biofuel blend, which contains 20 per cent biodiesel and is designed for trains.
BarCap chooses Amex for new iPath listing
Barclays Capital (BarCap) has chosen to list its new iPath exchange traded note (ETN) on the American Stock Exchange (Amex). The note is linked to the Chicago Board Options Exchange (CBOE) S&P 500 BuyWrite Index and the Amex specialist unit is…
EDF Trading builds its natural gas business in Spain
EDF Trading, the subsidiary of French utility EDF, responsible for wholesale energy market activity, has been granted a licence to trade physical natural gas in Spain and plans to start delivery of physical gas to market counterparties later this year.
ETG Capital opens energy hedge fund
Houston-based hedge fund firm ETG Capital Management has launched an energy fund.