London, 18 November 2013 – Trayport, a leading provider of energy trading solutions to traders, brokers and exchanges worldwide, announced today that it had acquired Contigo Ltd, a provider of energy trading risk management ETRM services. The transaction closed on 14 November, 2013.
Griffin has gone live on the ICE platform with the European power products. The website of Griffin does not mention anything about it yet, but all products & secuences are live on the screen.
As of today, it is possible to trade physical power for the Dutch, German, French and Belgian market. The FRench and German market also offer financial products.
There has been a bit of discussion whether or not the German electicity market should be made into a capacity market.
EEX is bringing out a stement today:
In its position paper, EEX concludes that, in a European single market, capacity markets intended to ensure the security of supply in Germany are not needed. However, better use should be made of the existing potential in order to strengthen the market. Peter Reitz, Chief Executive Officer of EEX, commented: “First, it is necessary to further develop the European single market, to implement energy efficiency measures, develop demand flexibility and, in particular, to improve the integration of renewable energies into the energy market. The introduction of a capacity mechanism should only be considered after that – provided there is both a demand for new conventional power plants and a lack of willingness to invest.“
Full EEX statement here.
FRANKFURT/DUESSELDORF, July 22 (Reuters) – German utility RWE has launched a new savings programme to cope with loss-making power plants and low wholesale power prices, according to an internal document obtained by Reuters.
The document said Germany’s No. 2 utility did not rule out job cuts at its power plant division as part of the programme, dubbed “Neo”.
Neo has been launched on top of the group’s ongoing cost savings programme “RWE 2015″, aiming for additional cost cuts of about 1 billion euros by the end of 2014.
Federal Reserve reconsiders letting banks ship oil and store metal.
The 10 largest Wall Street banks generated about $6 billion in revenue from commodities in 2012, including dealings in physical materials as well as related financial products, according to a Feb. 15 report from analytics company Coalition. Goldman Sachs ranked No. 1, followed by New York-based JPMorgan.
For more than 50 years, the Bank Holding Company Act prevented federally guaranteed lenders, such as JPMorgan, from direct participation in commodity markets. The prohibition didn’t pertain to Goldman Sachs and Morgan Stanley, which were investment banks, until they became bank holding companies in 2008. After that, the Fed gave both firms a five-year grace period, which expires in September, while regulators decided whether to curtail their activities related to metals, fuels and other goods.
Utility dive has a nice article about What the utility industry will look like in 10 years:
There is also an article about the ten greatest challenges:
The 10 greatest challenges the utility industry faces today.
All modern offices of these days seem to have the same problem; whenever you want to have a video conference with a number of people, there is never a room available with VC equipment.
Google now has some kind of a platform available called hangouts that is accessible from both computers and smartphones. Using your google account to log in to this platform enables you instantly to have a videoconference with someone directly, or even a group of people simultaneously. Setting up a call is easier than connecting with one of those dreaded polycom machines. A Polycom setup suddenly feels very old fashioned.
Energeya offers a full suite for energy and commodity trading floors. This package is used in a number of companies in southern Europe, mainly Italy. One North European company is currently migrating to this package.
The product that Energeye offers is based on an open source stack of standard components that deliver the basic functionality. On top of this stack is where the business logic is located that is developed in house.
All of the most important commodities appear to have been covered; Each commodity comes as a separate pacakge on top of standard packages. No pricing is shown, but I would assume that it comes a whole lot cheaper than an OpenLink based applciation deployment.
Everyone in IT is familiar with a common problem; Excel is heavily used on trading floors, and you can’t always blame the people for doing so. But when it comes to making big decisions, especially on trading desks, the traders might have to re-evaluate their usage of Excel; arstechnica has a nice article describing the problem here: Microsoft Excel: The ruiner of global economies?
The article itself refers to a list of trading losses on Wikipedia, where Excel is more than once the cause of miscalculations
“An analysis of Iksil’s trades revealed that he was using Microsoft Excel excessively, making a number of formula errors that caused him to underestimate the risks of his positions.”
Finally an article that I can throw at traders when they insist on using Excel instead of anything else.
Prisma is a platform where energy companies can trade gas capacity at a large amount of interconnection points on European transmission systems.The goal of Prisma is to develop a single European platform for gas network users.
PRISMA primary offers the following features to all registered users:
- Shippers can register for all participating TSOs through one single tool
- Detailed overview on all bookable network points and available capacity
- Auctions of firm yearly, quarterly, month-ahead and day-ahead products at cross-border and German market area interconnection points
- First-come-first-served bookings for primary capacities that do not have to be auctioned
The platform is fairly new and on the 15th of May 2013 it issued the results of the first month of capacity auctions.
Trading can be done on a web interface or via a Shipper-Service_Interface that uses an www.ebxml.org implementation made by Ponton consulting GmbH. Both interfaces support enquiries for grid and auction data as well as participation auctions.
More information can be obtained from their download area: Prisma Download Center.