Patrick Reames - Author Archive

EON’s Proprietary Energy-Trading Loss Narrows While Volumes Drop

Bloomberg – By Rachel Morison. EON SE, Germany’s biggest utility, reduced losses from buying and selling energy for its own account in 2013 as it recovered from lower earnings in gas, oil and eastern European power markets a year earlier. EON’s proprietary trading unit lost 49 million euros ($68 million)... continue reading

Ukraine crisis threatens upheaval of global commodities trading

The Australian, by BARRY FITZGERALD AND SUE NEALES The heavy geopolitical overtones to the flash point on the Crimean peninsula in Ukraine has global commodity markets working overtime on the consequences the crisis could serve up to global energy, minerals and agriculture trade flows. The initial assessment of the escalating... continue reading

What can we learn about hiring from Google?

In a New York Times article a couple of days ago, Google’s “head of people operations”, Laszlo Bock laid out what the company viewed as the ideal new hire.  It essentially boiled down to this – college experience and grades don’t matter – they want someone that is intellectually humble,... continue reading

U.K. FCA: Commodities Houses Pose Oversight Challenges

Reuters, by Sara Kent. LONDON—The greater role being played in commodities markets by trading houses poses regulatory challenges and risks to market integrity, the U.K.’s Financial Conduct Authority warned Thursday. As tighter regulatory requirements have reduced banks’ activities in the sector, their places have been taken by specialist companies, many... continue reading

Cargill loses $100 mln in U.S. winter energy trade – SparkSpread

(Reuters) – Global commodities trader Cargill Inc lost at least $100 million after a weeks-long bout of frigid weather in the United States sharply lifted power and natural gas prices, an industry publication reported on Thursday.Cargill lost most of the money in the PJM power market, the Pennsylvania-based electric power... continue reading

Visiting with Allegro’s executive team

I had the opportunity to meet with Allegro’s CEO, Ray Hood, and most of his senior leadership team this week for an analyst briefing in which they discussed their 2013 results and laid out their plans for 2014 and beyond.  Though some of the briefing was provided confidentially, there were... continue reading

Bank exits boost utilities, funds in Europe gas and power trading

(Reuters) – By Henning Gloystein and Vera Eckert Tougher European financial regulations have prompted banks to leave power and gas trading, meaning greater dominance by utilities and trading houses and less appeal for investors.The global commodities market for banks has shrunk to about $4 billion from as high as $12... continue reading

Quorum acquires Woodlands Solutions

Quorum Business Solutions (Quorum) will announce on Monday that it has acquired Woodlands Solutions, the Houston-based ETRM provider.  According to an early release provided by Quorum, Woodland’s “Phoenix ETRM will augment Quorum’s portfolio of software solutions that manage operational, administrative, financial, and transactional business processes for energy companies. The addition... continue reading

Reuters Exclusive: JPMorgan in talks with Mercuria on commodities unit sale

(Reuters) – Fast-growing trading house Mercuria, led by two former Goldman Sachs (GS.N) executives, has become the front-runner to buy the physical commodities unit of JPMorgan (JPM.N), one of the most powerful oil and metals desks on Wall Street, two sources told Reuters. JPMorgan decided to sell its multi-billion dollar... continue reading

More than mining: Anglo sets up trading arm

From Mining.com, by Frik Els   – Diversified mining group Anglo American (LON:AAL) surprised markets and ended 2013 on an exceptional note, as the turnaround plan under new CEO Mark Cutifani gathers pace. The London-listed giant reported robust increases in iron ore, copper, coal and platinum production and long-suffering investors – the... continue reading

Repower Goes Live on further Milestone of Allegro Energy Trading and Risk Management solution

Major Swiss Utilities Company Extends Power Trading with Allegro 8 to Milan Subsidiary... continue reading

Cloud-Based Molecule Software Takes on Legacy ETRM

HOUSTON — /PRNewswire/ — Molecule Software announced today the selection of its software by Vinmar International, a $4Bn global petrochemical marketing and distribution company.  Molecule will be replacing a leading legacy ETRM vendor’s flagship product. Vinmar selected Molecule for its ease of use, cost leadership, and quick implementation.  Said Vishal Goradia, Vinmar... continue reading

‘Burnt out’ EU likely to curb climate goals

By Matt McGrath; Environment correspondent, BBC News – The UK has lobbied hard to have the mandatory 2030 target watered down, saying it would drive up energy bills. The EU executive will also outline a goal on emissions cuts for 2030, set to be 35 or 40% below 1990 levels.... continue reading

Catching up with Molecule Software

I had the opportunity to visit with Sameer Soleja and Sam Parikh from Molecule Software last week and got a look at the latest developments around their trading and risk management solution. As readers may know, Molecule is a Houston-based and relatively new entrant into the ETRM and CTRM technology... continue reading

Goldman’s commodity trade ‘too important’ to quit: CFO

(Reuters) – Goldman Sachs Group Inc (GS.N) reaffirmed its intent to remain in the commodities trading business, deeming it “too important” to clients to exit, a top executive said on Thursday. The bank’s restated determination to retain its vaunted J. Aron trading business, even as some rivals shed physical trading... continue reading

OPCOM selects Trayport®’s GlobalVision Exchange Trading System

London, 9 January 2014 – Trayport, a leading provider of energy trading solutions to traders, brokers and exchanges worldwide, and OPCOM (the Romanian Power Exchange) today announced that an agreement has been signed for OPCOM to use Trayport systems for the new Romanian electricity market. OPCOM will launch a centralised... continue reading