Corporate hedging strategies affected by banking regulations: survey

Despite ‘end-user’ exemptions, strengthened banking regulations are likely to impact energy corporates due to their reliance on banks and other financial firms to manage hedging programmes, says a survey by Greenwich Associates

The 2012 Energy Commodities Study, conducted by consulting firm Greenwich Associates, asked 306 individuals at corporations located worldwide that hedge their exposure to energy commodities using over-the-counter derivatives, and 107 individuals that hedge metals exposure, about their views and actions on the topic over the past year.

One of the prominent findings was that companies increased the average number of dealers they needed to use for OTC derivatives last year. The average overall