Sean Carnahan

Archive for the ‘1’ Category

FINANZTAG 2010 – Frankfurt Germany. Attend this SunGard conference event for free with reply to contact below.

In 1 on March 19, 2010 at 4:47 pm

FINANZTAG 2010 – Frankfurt Germany. Attend this SunGard conference event for free with reply to contact below.

sean.carnahan@sungard.com

Wenn Sie sich für die Teilnahme an dieser Veranstaltung in Frankfurt am Wenn Sie sich für die Teilnahme an dieser Veranstaltung in Frankfurt am Main SunGard kostenlos, antworten Sie bitte direkt an mich mit Ihrer E-Mail, Titel interessiert, und das Unternehmen an sean.carnahan @ sungard.com für einen Registrierungs-Link .

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Die Finanzindustrie befindet sich immer noch inmitten der größten Herausforderungen der letzten Jahrzehnte. Traditionelle Lösungsansätze und lang bewährte Vorgehensweisen reichen nicht mehr aus, um sich auf die „neue Normalität“ einzustellen. Es ist an der Zeit, neue Partnerschaften, neue Geschäftsmodelle und neue Prozesse kennenzulernen und zu adaptieren.

Auf dem nunmehr vierten FINANZ-TAG, dem SunGard Veranstaltungs-Highlight im deutschsprachigen Raum, werden führende Wirtschaftsexperten globale Fragestellungen diskutieren und wertvolle Praxisbeispiele für die lokale Umsetzung liefern. Besonders freuen wir uns, dass es uns gelungen ist, mit Wolfgang Gaertner und Dr. Peter Leukert ausgewiesene Experten als Key Note-Referenten zu gewinnen. In sechs spezialisierten Themenforen präsentieren wir Ihnen zudem, welche Bedeutung „Transparency, Efficiency und Networks“ als kritische Erfolgsfaktoren für nachhaltiges Wachstum in der Finanzindustrie haben.

Wir sind überzeugt – nach Ihrem Besuch des FINANZ-TAGs 2010 wird Ihre „Bilanz“ folgende Aktivposten aufweisen können:

* Sie haben mehr über die aktuellen Trends auf den Finanzmärkten erfahren, Fachexperten aus Ihrer Branche getroffen und profitieren über den Tag hinaus von geknüpften Kontakten.
* Sie haben mit Produktexperten von SunGard über unsere Strategie gesprochen und sind über unsere neuesten Innovationen aus erster Hand informiert.
* Und nicht zuletzt: Sie erlebten einen hochkarätigen Tag in der Alten Oper in Frankfurt am Main.
Wir freuen uns darauf, Sie am 27. April 2010 als Gast bei unserem FINANZ-TAG begrüßen zu dürfen und wünschen Ihnen schon jetzt einen erfolgreichen Event, angeregte Diskussionen und wertvolle Erkenntnisse.

Posted via web from Sean Carnahan

Webinar: Successful Commodities Hedging – Making Intelligent Hedging Decisions

In 1 on November 17, 2009 at 5:05 pm

CLICK HERE TO REGISTER NOW to learn more about an effective hedging process.

 
 

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Successful Commodities Hedging- Making Intelligent Hedging Decisions

Do you know how to measure the success of your hedging program? Uncertain how much of your exposure to hedge?

Join SunGard Energy and Commodities and host speaker Moazzam Khoja for this complimentary 60-minute Web Seminar. Learn more about commodity hedging and it's strategic importance.

Risk methodologies have been employed by the corporations for several decades to protect cash flows. However, the issue of how to set a hedge policy and whether to hedge or not baffle many corporations. A lack of familiarity with hedging tools and strategies compounds this confusion.

See how an effective hedging program helps you to transform confusion into clarity. Learn more about the five step hedging process designed to help hedgers to make informed hedging decisions and whether or not their companies stand to benefit from a hedging program. 

REGISTER NOW to learn more about an effective hedging process.

  • Featured Speaker: Moazzam Khoja, senior vice president, SE&C 
  • Date: December 3, 2009
  • Time: US: 10:00am CST, Europe: 5:00pm CET


About Moazzam Khoja

Moazzam Khoja, CFA is the senior vice president at SunGard Energy and Commodities. In this capacity he looks at the strategic issues facing SunGard customers in particular and commodity derivatives industry in general. He presents SunGard's Kiodex risk management solutions to enterprises that take commodity risks. He has worked for the past thirteen years in the commodity risk management area including issues related to commodity derivatives valuations, structuring of complex energy and credit derivatives, and hedging process and analysis. He has authored several articles in leading industry publications to address these issues. He obtained his MBA from the Columbia Business School in 1996 and his chartered financial analyst designation in 2003.

Best regards,

Sean Carnahan

Posted via email from Sean Carnahan

Invitation to SunGard Web Seminar: New Regulatory Changes for the Gas Market: NAESB 1.9

In 1 on November 17, 2009 at 4:22 pm

CLICK HERE TO REGISTER NOW for NAESB 1.9 : part 1

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EGY_Header_550x70 

New Regulatory Changes for the Gas Market: NAESB 1.9

Is your gas business impacted by the NAESB 1.9 regulations? Are you prepared for compliance? Ready to utilize new capabilities?

Join SunGard Energy and Commodities and host speaker Sylvia Munson for two complimentary 60-minute Web Seminars. Learn more about the specific changes that come along with NAESB 1.9. We like to hear from you how these changes will impact your business.

NAESB 1.9 part 1: Learn more about the nominations, flowing gas, and invoicing changes. NAESB 1.9 contains a new standard 1.3.80 which requires pipelines to support flexible receipt and delivery points for existing nominations. This standard alone has the potential to be implemented differently by every pipeline. Our goal in this session is to find a small set of solutions that will meet all of your needs.

NAESB 1.9 part 2: This sessions will explore capacity release, electronic delivery mechanism (EDM) and additional standards changes. You will learn about new requirement for pipelines to support index based transportation pricing and an extensive set of rules goes with those requirements. See, how new gas quality reporting requirements help you and learn how those should be implemented.

REGISTER NOW for NAESB 1.9 part 1:

  • Featured Speaker: Sylvia Munson, director, product management, SE&C 
  • Date: December 1, 2009

Time: 1:00pm CST

REGISTER NOW for NAESB 1.9 part 2:

  • Featured Speaker: Sylvia Munson, director, product management, SE&C 
  • Date: December 8, 2009
  • Time: 1:00pm CST


About Sylvia Munson

Ms. Munson directs gas operations and pipeline product management for SunGard Energy and Commodities. She has participated in the North American Energy Standards Board (NAESB) since its inception as GISB in 1995 and has served on its Board of Directors, Executive Committee and as chair of various sub-committees. Ms. Munson is a highly regarded speaker and author who has written various articles and contributed several to NAESB published books.

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Best regards,

Sean Carnahan

Posted via email from Sean Carnahan

SunGard Energy & Commodities Web Seminar: Lessons for Financial Risk Management from the Great Recession

In 1 on October 16, 2009 at 3:58 pm

Register for this free SunGard Energy & Commodities Webinar
http://bit.ly/financialriskwebinar


What has the financial crisis taught us about risk management? Do you think the "reach for yield" distort the market's risk preferences?

Join SunGard Energy & Commodities and Dr. David Rowe in this complimentary 60-minute Web Seminar. Learn about the evolution of risk management, where it failed during the credit crisis and the lessons we learn from it. See, how these lessons impact the energy markets.

Learn from this expert in the risk management industry about:

  • Statistical entropy – the inherent limits of quantitative tools 
  • Importance of structural imagination - why we neglected dimension of risk analysis
  • Self-Referential Feedback - the danger of corrosive feedback loops in pricing and risk management
  • Complexity and Dark Risk - intransparency breeds hidden dangers
  • Alternate Means of Valuation - ignore a possible failure of liquidity at your peril

Discuss with David the attention which has been paid to Value-at-Risk (VaR) as a tool for risk estimation and his definition for VaR not being the "worst case loss".

Below link is to register for this free SunGard Energy & Commodities Webinar
http://bit.ly/financialriskwebinar

o Featured Speaker: Dr. David Rowe, EVP, SunGard Adaptiv
o Date: October 29, 2009
o Time: 10:00am CST (4:00pm CET*)

Best regards,

Sean Carnahan

Posted via email from Sean Carnahan

Invitation to SunGard Web Seminar: New Directions in Trading Carbon and Energy Efficiency

In 1 on October 2, 2009 at 10:00 pm


 

New Directions in Carbon Trading and Energy Efficiency 

                                      

Do you want to know how your business can contribute to cutting carbon? Is carbon trading the right way forward?

Join SunGard Energy and host speaker Tom Bainbridge in this complimentary 60-minute Web Seminar. Learn about the 'Carbon Reduction Commitment', a hybrid emissions trading scheme for energy consumption related emission which will be first introduced in the UK. This scheme applies to larger energy consumers in the public and private sectors, across the whole range of business and public sector activities, from April 2010. Get to know more about the interrelationship with other carbon trading schemes, and programmatic CDM.

See how this scheme has already gained traction in India (where similar arrangements are to be introduced) and interest by legislators in North America and in the European Commission.

REGISTER NOW to learn more about the Carbon Reduction Commitment.

  • Featured Speaker: Tom Bainbridge, partner & head of energy group, Nabarro
  • Date: October 21, 2009
  • Time: 10:00am CST*  (5:00pm CEST)


About Tom Bainbridge

Tom is partner and the head of the Climate Change & Energy group of Nabarro, a major UK commercial law firm, where he focuses on sustainable energy and other climate change matters. He advises private and public sector clients on various aspects of climate change policy, low and zero carbon energy and energy efficiency schemes, the carbon financing of other emissions reduction projects and emissions trading arrangements.  He is deeply involved in scrutiny of the Carbon Reduction Commitment, lobbying for clarification of problem aspects of the policy, advising clients how it will impact upon them and helping them to develop business strategies to minimise risks and maximise the benefits of the scheme.

Tom has authored numerous articles and spoken on various aspects of environmental and energy law. He gave evidence before a Commons Select Committee on the then draft Climate Change Bill and he chairs the climate change working party of the UK Environmental Law Association.

* For all Asia-Pacific customers: We will record this Web Seminar.

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SunGard Energy Solutions • 1331 Lamar Street, Suite 950 • Houston, TX 77010 USA
www.sungard.comSubscription Preferences

© 2009 SunGard.
Trademark information: SunGard and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

 

Posted via email from Sean Carnahan

Webinar: The New Paradigm for Value at Risk

In 1 on September 4, 2009 at 4:15 pm

To view this email as a web page, go here.


 

The New Paradigm for Value at Risk 

                                      

Does the global financial crisis have you questioning the use of Value at Risk as a risk management tool? How might the new Basle II regulations help prevent future disasters?

Join SunGard Energy Solutions and Chris Coovrey in this complimentary 60-minute Web Seminar. Learn about  emerging new paradigms in Value at Risk arising from the unexpected and massive losses suffered by sophisticated financial institutions in the global economic crisis that began in 2007. In this Web Seminar, Mr. Coovrey will present this paradigm shift and its affect on many risk management best practices including the new changes in Basle II requirements.

REGISTER NOW to learn more about the shift in Value at Risk.

  • Featured Speaker: Chris Coovrey, senior quantitative developer, SES
  • Date: September 16, 2009
  • Time: 10:00am CST*  (5:00pm CEST)


About Chris Coovrey

Mr. Coovrey is the senior quantitative developer for SunGard Energy Solutions where he focuses his efforts around risk and complex option valuation and development. He is a graduate of the US Air Force Academy and has a master of science in financial mathematics from the University of Chicago.

Mr. Coovrey brings more than 15 years of experience in the commodity and fixed income industries, working for both private and public institutions in the investment and merchant space. His numerous roles have included: physical commodity trader; commodity derivatives trader; commodity structurer; desk manager fixed income and currencies trading and head of structuring/quantitative modeling for renewables and emissions.



* For all Asia-Pacific customers: We will record this Webinar.

Privacy Policy
SunGard Energy Solutions • 1331 Lamar Street, Suite 950 • Houston, TX 77010 USA
www.sungard.comSubscription Preferences

© 2009 SunGard.
Trademark information: SunGard and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

 

See and download the full gallery on posterous

Posted via email from Sean Carnahan

Solar Energy from Space? yes please.

In 1 on August 27, 2009 at 8:18 pm

From Energy Matters A blog exploring IT efficiency, energy and sustainability

The Energy Cloud

A good deal of opinionating on Cloud Computing is slowly transformed to real substance: standardized services over the net.  They range from Google search to salesforce.com to EMC's Mozy offering of on-line backup.

During a customer forum last week, one gray-haired IT director asserted that these ideas were nothing new but just a new twist on Mainframe time sharing. 

Perhaps.  I never argue with a Mainframe guy.

But the twist is that we can accomplish this now in ways that were not available before.  What was lumbering and expensive can be fast, elegant and cost-effective. 

That's where new technologies, or new application of old technologies become the innovation drivers. 

So, apply the same principles to energy.  Think of it as the energy cloud.  Solar, and wind and wave energy generation are not new, but the refinement of the means and the changes in economics and the consciousness of environment, make them much more appealing and realistic. 

Of course there is also the profit motive.

Wind Power

T. Boone Pickens, the US billionaire oilman,  testified before Congress last week about his campaign to create a wind-energy grid in the Midwestern US.  He wants to replace gas-fired power plants with windmills.  20080718_texasturbines

Pickens expects to spend tens of millions of his own money promoting the idea in television and Internet advertising.  In ten years he sees it as feasible to replace as much as 38% of US oil imports by using wind energy.

This is not an altruistic initiative. 

Pickens is a billionaire.  He says he's in the energy business, not the oil business.  And economically and technically the opportunities are there to ramp wind while oil is dialed back.

In his testimony he cited national security as a primary motivation.  But he's also a businessman and is investing huge amounts of money to build a windfarm in West Texas that will produce 4000 megawatts, the equivalent of two and a half Nuclear power plants.

Pickens noted that a number of other nations…"such as Germany, are ahead of the United States when it comes to using wind power for electricity."And Germany doesn't even have good wind. We have fabulous wind"

The U.S. wind industry has been seeing phenomenal growth in the last few years -  45% in 2007, and more than half of that is already in Texas where there are already 5,300 installed megawatts.  That's enough for more than a million Texas homes.  And I thought they only did coal.

Of course there are lots of other places where wind is already a well developed energy source.  In Ireland, for example, there is nationwide program for wind and solar power. 

And an enterprise called Airtricity is developing a "European Offshore Supergrid, bringing together the latest technology in wind generation and electricity transmission to provide a secure, sustainable and uninterrupted supply of electricity to EU member states."

I was in Britain last week and saw an Ad for "npower" promoting a program called "Juice" that produces energy from solar, tidal and wind; mostly wind.  They promote it to customers, giving them the choice of fossil or renewable at the same price:

"Juice is generated from a number of renewable energy sources, primarily at North Hoyle Offshore Wind Farm. As a Juice customer, npower matches every unit of normal electricity that you use and feeds the same amount, generated from renewable sources, into the electricity network*.

It's as simple as that."

Waves and Tides

Off the Cornish coast  they are also  developing the world's first wave wave-powerfarm which is expected to come on line within three years.   

Talk about a refresh of old technology concepts; some of the principles involved here can be traced back to Archimedes.  Older than Mainframes!

Here's the other not-so-surprising note on this project, it's partly financed imagesby Shell Oil.  Pickens isn't the only one that isn't just in the oil business any more. 

There are also a number of practical applications already on line to harness wave power. 

Tidal energy generators are large underwater turbines placed that capture energy from high tidal movements in order to produce electricity.

Already operational on the coast of Wales, tidal power has terrific potential for future power and electricity generation.

Solar

Germany is already the worlds leading power producer from the Sun.  About 55% of the world's solar energy is harnessed in Germany. Spurred on by a renewable energy law passed in 2000, about 3 percent of Germany's electricity now comes from the sun.  By 2020 the government wants 27% to come from all renewables, up from 13%. 

In large part the solar farms are modest compared to the heavy investments aimed at becoming the leading producer of advanced solar energy technology.  The industry has created tens of thousands of jobs and is  "posting growth rates that surpassed the optimistic forecasts made by the fathers of a pioneering 2000 renewable energy law."

They may too far from the equator, and too overcast and rainy to be the best solar location, but they intend to profit from supplying those who are.

Solar from Space

Here is one that may sound like science fiction: solar power from space.

Collect solar energy in space and beam it back to earth for an endless supply of relatively cheap and secure power.

Image:Suntower.jpg

How cool is that?

Apparently this concept is also not new and according to an article in the International Herald Tribune last week there is quite a lot of serious investigation and development already underway to test feasibility.

The idea is to build large solar energy collectors that will orbit the Earth. Unlike land-based stations they are not hampered by weather, angle of the sun or darkness.

The collected solar energy is beamed to Earth using wireless radio transmission to receiving stations near cities and points of primary use.  There it's converted to conventional electric power. Cost per kilowatt-hour is projected to be about the same as today's common consumer rate.

Now they still need to get efficient collectors up there.  NASA is working on a public-private launch service initiative that may get the job done.  And you can expect that future thinking businesses will be looking at this as a new way to turn a profit.

How about Exxon Space Energy?  Wouldn't be surprised to see Pickens in on this after the windmills are all spinning.

Energy Cloud

Wind. Wave. Water. Solar.  Renewable and feasible.

So back to the Cloud analogy.  All of these can feed power to the grid.  You may have excess power from your own sources that you can feed into the grid.  Like Utility or Cloud computing, we have choices and potential that we didn't have before.

It's all progress.  It's an environmental improvement opportunity.  It's an economic opportunity too.  Just ask T. Boone.

Best regards,

Sean Carnahan

Posted via email from Sean Carnahan

GWPC, DOE to host first water-energy sustainability symposium

In 1 on August 23, 2009 at 2:46 am

Sept. 13-16: The Ground Water Protection Council and the US Department of Energy will host the first water-energy sustainability symposium to address challenges in meeting future water and energy needs. It will be held in conjunction with the GWPC’s 2009 annual forum in Salt Lake City.

Aimed at both state and national policymakers, the symposium will bring together more than 60 top water and energy experts to discuss water use and its energy development impacts; water needs for unconventional oil, gas, solar, hydropower, and nuclear power production; integrated water-energy planning, and other hot topics, GWPC said. For a full agenda and registration information, go online to www.gwpc.org.

Why it matters: Policymakers outside the western United States, where water can be scarce, have begun to recognize in the past year that water and energy issues often converge. Large, predictable quantities of water are required to produce various kinds of energy. Hydraulic fracturing, which has been used to recover natural gas from the Barnett and Haynesville shales, is being considered for the Marcellus Shale underlying parts of New York, Pennsylvania, and West Virginia. The technology’s use is currently regulated by states, but US Reps. Diana DeGette (D-Colo.) and Maurice D. Hinchey (D-NY) introduced a bill in June to federally regulate it under the Safe Drinking Water Act.

Treating and distributing water also relies on easily accessible, affordable energy. The interdependence of energy and water, and the need for policy collaboration, has become clear as experts in both fields search for ways to meet demand for both resources. Co-sponsors for the symposium include the Petroleum Technology Transfer Council, the National Ground Water Association, the Association of State Drinking Water Officials, and the National Rural Water Association.

Contact Nick Snow at nicks@pennwell.com


Best regards,

Sean Carnahan

Posted via email from Sean Carnahan

MARKET WATCH: Gas drops to 7-year low of under $3/MMbt

In 1 on August 23, 2009 at 2:44 am

Published: Aug 21, 2009

Sam Fletcher
OGJ Senior Writer

HOUSTON, Aug. 21 — Natural gas dropped to a 7-year low to less than $3/MMbtu Aug. 20 in New York market despite the US Energy Information Administration reporting a lower-than-expected injection of gas into US storage; the expiring September contract for benchmark US crude crept higher in mixed and volatile trading.

In New Orleans, analysts at Pritchard Capital Partners LLC said, “Over the past 12 weeks finished [gasoline] demand, as reported by the EIA, has been well below its 5-year average and last week freight traffic across North America was down nearly 18% year-over-year. Crude prices have been range-bound for nearly 3 months between $60-73/bbl and, as we expect demand for crude products to remain below their 5-year average through 2009, prices will continue to trade in this range unless the US dollar is materially devalued or investor sentiment regarding a global economic recovery changes, impacting crude demand in 2010.”

Analysts in the Houston office of Raymond James & Associates Inc. advised, “Expect [gas] prices to trend even lower as the market realizes that we are headed for full storage in the coming months,” In early trading Aug. 21, oil prices increased to the highest levels of this year, “likely due to a slightly weaker dollar,” they said.

In a speech at an annual Federal Reserve conference in Jackson Hole, Wyo., Fed Chairman Ben Bernanke said economic activity appears to be “leveling out” in both the US and around the world and “prospects for a return to growth in the near term appear good.” As a result, the central bank has taken steps to pull back some economic emergency programs.

Meanwhile, the National Association of Realtors said home sales rose 7.2% to a seasonally adjusted annual rate of 5.24 million in July, from 4.89 million in June. It was the largest monthly increase in at least 10 years as first-time home buyers rushed to take advantage of a tax credit that expires this fall. It marked the fourth consecutive monthly increase and the highest level of sales since August 2007.

On Aug. 20, the US Department of Labor said the number of first-time unemployment claims rose unexpectedly for the second consecutive week. Moreover, the Mortgage Bankers Association reported more than 13% of homeowners with a mortgage are either behind on their payments or in foreclosure. Mortgage delinquencies hit another record high in the second quarter, said Pritchard Capital Partners.

EIA said commercial US inventories of benchmark crudes plunged a whopping 8.4 million bbl to 343.6 million bbl in the week ended Aug. 14. Gasoline stocks fell 2.1 million bbl to 209.8 million bbl in the same period. Distillate fuel inventories declined by 700,000 bbl to 161.6 million bbl (OGJ Online, Aug. 19, 2009).

Olivier Jakob at Petromatrix in Zug, Switzerland, said, “Despite the high level of [crude] stocks in Cushing, [Okla.,] the expiring West Texas Intermediate spread (September-October) closed at the narrowest contango of the year and in a lesser contango than the September-October expiry of last year, even if Cushing stocks are almost double the levels of a year ago. Stocks in Cushing are high, but if they are filled up with heavy Canadian crude oil that cannot be delivered, then the only thing that really matters is the stock-to-tank capacity ratio, and since Cushing has seen an increase of shell capacity over last year, it is difficult to determine if its capacity utilization is any higher than a year or 2 years ago.”

Jakob cautioned, “Hurricane Bill will hit Canada over the weekend, probably still with Category 1 strength. The main risk exposure will be on the Dartmouth Halifax 90,000 b/d and the Come By Chance 115,000 b/d refineries.”

Adam Sieminski, chief energy economist, Deutsche Bank, Washington, DC, said, “There is a very strong rise in negative correlation between the gasoline pump price and demand at prices above $3.50/gal, equivalent to around $3/gal on the New York Mercantile Exchange gasoline contract. With prices still well under this threshold, as the economy starts to recover, income elasticities may begin to dominate and offer some positive support to gasoline demand.”

Net electricity generation in the US dropped more than 4% in May from year-ago levels. Sieminski noted, “Preliminary data for June and July suggest the trend continued with year-over-year declines in the 5-6% range, driven by falling gross domestic product, declining industrial production, and below-average summer temperatures across most of the US. Gas use for electricity rose and coal use fell. This pattern is expected to continue into the second half and eventually will help improve gas supply-demand balances.”

Energy prices
The expiring September contract for benchmark US sweet, light crudes rose 12¢ to $72.54/bbl Aug. 20 on NYMEX. However, the October contract dropped 92¢ to $72.91/bbl. On the US spot market, WTI at Cushing was up 12¢ to $72.54/bbl. Heating oil for September delivery lost 3.35¢ to $1.89/gal on NYMEX. Reformulated blend stock for oxygenate blending (RBOB) for the same month fell 5.24¢ to $1.98/gal, wiping out much of the gains from the previous short rally.

The September contract for natural gas fell 17.4¢ to $2.95/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., lost 2¢ to $3.02/MMbtu.

In London, the September IPE contract for North Sea Brent declined $1.26 to $73.33/bbl. Gas oil for September was up $3.25 to $603.75/tonne

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes gained $1.44 to $72.57/bbl on Aug. 20.


Best regards,

Sean Carnahan

Posted via email from Sean Carnahan

PE Magazine article: “Commodity STP: Clearing, Transparency, Control” an Interview with Sharon Fortmeyer-Selan

In 1 on August 19, 2009 at 8:58 pm

 

Interview with Sharon Fortmeyer-Selan

W
hat began as a banking crisis has changed the capital markets and shaken energy commodity markets as well. P&E asked Sharon Fortmeyer-Selan of SunGard Energy Solutions about the trends are emerging from the crisis, and what tools can help to address them.
How is the global financial crisis impacting commodity transactions and what trends do you see emerging as a result of this?
Sharon Fortmeyer-Selan.
Barely two years ago, we heralded the hedge funds and financial institutions for the liquidity they brought to commodity markets. The widespread financial crisis has dampened this liquidity as some participants retrenched or withdrew from commodities markets. More significantly, it has brought extreme volatility and fueled deep concern, some might even say fear, about counterparty risk. 

These impacts are in turn giving rise to several key themes or trends. One trend is a significant shift of volumes of over-the-counter (OTC) trades to exchange-backed clearing or clearing houses. Another is a trend toward independent validation of positions and books which translates into an increased need for price and valuation transparency. A third trend is toward tighter internal controls and increased regulatory oversight.  

How will the shift to cleared trades impact processes and systems?
SFS.
Clearing requires a sufficient number of participants and liquidity to work. Nymex introduced its clearing platform and began offering OTC cleared products in 2002. Since then, the number of OTC products Nymex offers has grown to over 600. One element of achieving this is to develop standardized products and an efficient way to price and settle them.  To handle the complexities of more exotic trades, we will need to implement new processes for price discovery and upgrade technology to support the unique characteristics of these trades. 

Systems like SunGard’s Aligne that incorporate grid-technology, service-oriented architectures, configuration flexibility and scalable performance provide a platform for clearing OTC trades. Today’s ability to connect and settle directly with exchanges like Nymex and ICE and clearing houses will be complemented by the ability to present an aggregated view of the data across transactions and operations for immediate decision-making.  

What is the best way for businesses to achieve transparency and control?
SFS.
Speed and accessibility of reliable, timely market data is a key success factor for commodity traders and other market participants. Aggregating price, volume and other key transaction data from multiple sources including exchanges, pools, counterparties and partners and applying analytics against the results enables transparency. The automated capture of data from the exchange cleared transactions in conjunction with clearly defined processes for price discovery helps support the requirement for transparency.  Increasingly available with low latency, this data enables more immediate decision-making. 

Defining and documenting transaction processes from deal capture to expiration is a critical element of controls. Establishing the rules based on roles, risk tolerances, or other parameters, monitoring adherence to them, and setting alert thresholds is also key. Automating the associated process workflow strengthens and streamlines the controls.
 
How can technology help address these challenges?
SFS.
Automating the flow of information from the initial transaction initiation through to its execution and expiration helps to remove the human element of operational risk. This seamless information flow provides straight-through processing that may be facilitated by workflow automation tools for greater accuracy and speed. Service-oriented architectures with enterprise messaging and business process automation are foundational technologies to enable the transparency, controls, and agility needed to navigate challenging business environments. 

Standardized contracts and processes, real-time transactions, accurate market data and configurable risk toolkits combine with direct market and exchange clearing to help commodity market participants rise above economic challenges. SunGard’s Aligne provides an advanced set of risk assessment and risk management tools designed specifically for energy traders, risk managers and credit officers, to help them measure and manage a number of key energy exposures. Aligne delivers these capabilities through one fully integrated solution suite, deployed and supported by one collaborative team of experts.

Sharon Fortmeyer-Selan is Senior Vice President, Marketing for SunGard Energy Solutions. She brings over 25 years of experience in software solutions marketing to her role. Fortmeyer-Selan has served as Chief Marketing Officer for several start-up software companies and held leadership positions in solutions marketing for Compaq, AT&T, and NCR specializing in transaction processing, business intelligence and emerging technologies.

Posted via email from Sean Carnahan

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