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commodity trading

Energy & commodity markets

Introduction

Energy and commodity markets are currently undergoing fundamental changes. Price rises are driven by increasing scarcity and restrictions on trading. Investors tend to regard commodities (and the associated financial derivatives) as a separate asset class. Speculative behaviour on the part of some investors can produce major price fluctuations with little or no warning. The globalisation of important value chains presents a growing threat to the supply of commodities and input goods.

Current trends in the energy and commodity markets also constitute an increasing risk for producers, industrial firms and investors. All of this places further demands on risk management systems and the underlying methodologies.

Training related to energy and commodities

Effective risk management strategies are often based on the use of financial derivatives to hedge physical exposure in the area of commodities. To ensure that these tools are applied in the most effective and reliable manner, it is crucial to maintain a close-knit system of risk monitoring based on the most useful risk indicators. The process of calculating these indicators is largely based on the valuation of hedging derivatives and commodity risk exposure using quantitative modelling techniques.

Our course "Modelling and valuation of energy and commodity derivatives" can give you the background knowledge you need in order to set up and apply these models.

The optimal shaping of trading and portfolio management strategies according to the individual risk / return targets is key for a firm’s success in power and gas market operations. To meet these goals in a most efficient and practical way, it is indispensable to make use of powerful quantitative approaches.

Our course "Energy portfolio optimization and trading strategies", presented jointly with our partner KYOS, will provide you with the necessary knowledge and hands-on experience to successfully set up and apply these concepts in your organisation.

Under IFRS rules, the use of hedging derivatives can produce fluctuations in your net balance sheet result that have no real economic foundation. Only the consistent application of hedge accounting methods in accordance with IFRS can ensure that your balance sheet properly reflects the value of hedge relationships.

Our course “Hedge accounting for commodity price risks”, presented jointly with our partner Intercontinental Exchange (ICE) will give you the knowledge you need to make effective use of hedge accounting methods in your organisation.