Electricity

[Ali3018]

Hi Guys, I am not sure if this is true, but I am hearing investment banks are trading electricity... Is this true? Is there another name given to this?

 

[trader_dante]

Hi Guys, I am not sure if this is true, but I am hearing investment banks are trading electricity... Is this true? Is there another name given to this?

Yes it is true.

Electricity Futures are quoted on the NYMEX under the ticker JM.

However, it is a VERY thin market and I wouldn't imagine that you have that being traded by IB's. I would suspect most of the open interest is from producers hedging.

 

[wackypete2]

Hi Guys, I am not sure if this is true, but I am hearing investment banks are trading electricity... Is this true? Is there another name given to this?

Watt a shocking revelation. You have to be lightening fast to trade that market. Make sure you have ample margin.

Peter

 

[Ali3018]

I was told by some one that they were trading physical through their trading desk within investment banks, with counterparties from different countries. Any truth to this?

 

[mark1111]

Yes... All the major IB's are trading both physical and financial electricity/power. In Europe, Germany is the most liquid country. But there are exchanges and OTC physical markets in all western and central European countries. Eastern Europe is starting to become more deregulated and liquidity is picking up.

The reason why you will find it hard to trade personally is that in order to trade Physical you require an operations desk to schedule physical flows between grids of neighbouring countries. Very lucrative market to be involved with.

The U.S is a more mature market but all the banks, trading houses, and utilities, large consumers involved there also.

 

[scose-no-doubt]

Yep theyz real.

One of the ways Enron was shafting people was punting the derivatives and then causing brown outs when they were in the red to spike the price.

Sounds like a lovely market to trade.

 

[wackypete2]

They call that re-volting

Peter

 

[camembert]

electricity trading? are you 'avin a Van der Graaf??

was a drive a while back for locals in the PJM i fink.

 

[Ali3018]

Mark, I would be quite interested to know more about this, do you know where I can learn more?

 

[Richie_A]

Haha love the jokes,

Yes. IB's are involved in electricity,

 

[pboyles]

Re: Re

Electricity is the set of physical phenomena associated with the presence and flow of electric charge. Electricity gives a wide variety of well-known effects, such as lightning, static electricity, electromagnetic induction and the flow of electrical current. In addition permits the creation and reception of electromagnetic radiation such as radio waves.

Thank you for that. Do you happen to know anything about Binary Options as well?