Archive for the ‘Risk Management’ Category

An Easily Understandable Explanation of Derivative Markets

August 26th, 2010 Gary Vasey

I came across this recently and I just couldn’t resist posting it here….. Sheer genius.

Heidi is the proprietor of a bar in Detroit. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with new marketing plan that allows her customers to drink now, but pay later.

She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).

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Posted in Industry Issues, Risk Management Tags: , No Comments »

eOpt Adds Value

July 13th, 2010 Gary Vasey

Several months ago at E-World in Essen I was introduced to Mr. Rajeev Bhatt of eOpt Solutions. eOpt are based in Germany and describe themselves as “a unique products and services company, that offers smart solutions in the Energy Trading and Risk Management space.” Founded in late 2008 by a small group of energy industry professionals who had spent several years at the forefront of energy and technology, eOpt saw opportunities to provide specialist software tools and consulting in and around the periphery of traditional CTRM software. By focusing on areas where CTRM software can often be weak, Mr. Bhatt was confident that eOpt had found a good business opportunity.

Today I was updated by Mr. Bhatt on the company’s progress to date. The company is 5 strong and is in the process of adding a 6th person with a target of doubling its staffing by the end of 2011. It has four clients; 1 in the Netherlands and three in Germany and is hoping to add two more over the summer in the UK and Italy. It is focused on the trading side of energy in areas such as forward curves, pricing and risk tools for complex energy portfolios as well as developing bespoke solutions for customers.

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Posted in Risk Management, TRM Vendors Tags: , , No Comments »

New Technical Briefing Note Available

June 29th, 2010 Gary Vasey

CommodityPoint has issued a new Technical Briefing Note on Risk Optimization highlighting the Hyper Rig Risk Optimiser product. The TBN may be downloaded from the Reports and Articles page of this blog.

In an ideal world, running stochastic risk metrics such as full blown Monte Carlo Value at Risk (VaR), Earnings at Risk (EaR), portfolio stress tests or, other simulations, would be performed both on demand and in real time for complex commodity portfolios. Unfortunately however, this vision has proven to be elusive with most firms resorting to the use of overnight ‘batch’ jobs lasting hours to provide an accurate assessment of the day’s starting position and then utilizing parametric risk metrics during the trading day to approximate changes in position.

This is a preview of New Technical Briefing Note Available. Read the full post (372 words, estimated 1:29 mins reading time)
Posted in CommodityPoint Research, Risk Management Tags: , , No Comments »

Energy Risk – Prague

December 22nd, 2009 Gary Vasey

I attended, spoke at and moderated a panel at the Energy Risk conference in Prague on Central & Eastern Europe last week. The event was very well attended and there was some very good discussion around risk management and the CEE region – which recently has been a center of industry attention.

For me the speakers dinner was the most rewarding as I had a very illuminating conversation with David Kucera, CEO of the Prague Power Exchange about their progress in establishing an exchange in the Czech Republic and the impact of local politics on the initiative. Additionally, I discussed a variety of industry issues with the CRO and Head of Trading of CEZ, the Czech Utility and Trader, as well as with Vincent Kaminski – ex- head of trading at Enron and now a University Professor.

This is a preview of Energy Risk – Prague. Read the full post (183 words, estimated 44 secs reading time)
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