22 October 2010
Improving risk management processes and systems is a critical area of focus for many commodity trading firms. Significantly more attention is now being paid to commodity markets and traders by a wide range of stakeholders including; consumer groups, regulators and financial agencies, governments and shareholders or investors, who increasingly require more detailed information about trading activities, exposures and risks. This increased scrutiny is exposing many significant issues around both the processes and systems that are used to understand, manage and report on risks. In fact, CommodityPoint research consistently demonstrates that risk management across the board is now one of, if not the single largest, concerns for commodity trading firms.
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30 September 2010
In the period since the collapse of Enron in late 2001, the global energy commodities markets have undergone tremendous change, including: the entrance of new participants; the rise of new markets, exchanges, and derivative products; increased demand for energy products spurred by global economic expansion, particularly from the emerging and accelerating economies of China and India; and new legislative mandates that have reshaped fundamental relationships amongst both energy and non‐energy commodities. These developments have fundamentally changed the markets, impacting not only the supply and demand dynamics, but have spurred the development and widespread deployment of new trading strategies in which a commodity’s intrinsic value has become less about its utility and more about its volatility.
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