UK GAS - TRADING AND RISK MANAGEMENT
one day seminar
The UK gas trading market is the most liquid in Europe, and is known for its high volatility and sometimes extreme prices. The UK gas – trading and risk management one-day seminar provides a practical overview of the UK gas trading market and explores risk management strategies for gas market players. The course includes a review of key drivers in the UK gas market, and the popular gas trading exercise, which gives delegates a hands-on experience of gas trading. Risk management workshops provide practical applications of strategies to company positions.
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- How the gas market works
- Design principles
- Operating practicalities
- Regulation and rules
Regulation -
- Power Generation
- Storage
- Swing
- Meeting Peak Demand
- New Projects
- LNG
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- Seasonal but unpredictable demand
- Role of weather, economic & social factors
- Limited supply flexibility
- Long pipelines, joint production, contract terms
- Balancing and storage
- Different operational regimes, high cost of storage
- Gas price behaviour
- Volatile, seasonal prices
Behaviour -
- Derivative contract that gives the holder right (but NOT the obligation) to buy or sell the underlying contract at the strike price.
- Call option
- The right to buy at the strike price
- Fixes maximum price
- Put option
- The right to sell at the strike price
- Fixes minimum price
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- Types of player
- Risks faced
- Inherent optionality
- Contracts
- Physical position
Optionality -
- The purpose of this exercise is two-fold: firstly to enable the participants to think strategically about how to trade gas with a given gas supply and demand portfolio and, secondly, to give all the participants the opportunity to experience a gas trading environment via an ‘OTC’ market.
- Whilst we always allow time for questions during the course of the day, it always helps to have a discussion time at the end.Questions, discussion and close
- 20th October 2010 - London
We reserve the right to change the venue, dates and programme at our discretion.
- Risk managers and commercial operators
- Traders and middle and back office staff
- Commercial managers
- Financial managers
- Market analysts
CPD Credit now available for all participating Solicitors* and Accountants**
*All of our courses are CPD accredited by IGEM
(The Institute of Gas Engineers and Managers)
and The Solicitor's Regulation Authority.
**Attendance may also contribute to meeting
requirements under the terms of the ICAEW's CPD
policy for accountants. (Visit www.icaew.co.uk
for full details).