The primary factor contributing to energy trading room successis information, which comes before risk management and workplacecultural factors, according to a Saladin survey of energy traders.Traders told Saladin they are using more information and analysisthan they did a year ago. Saladin predicted a year ago thatInternet usage would outpace traders’ predictions, which theinformation provider found to be the case with its latest survey.Also as predicted, there is an increased focus on risk managementand integrated systems. Three-quarters of traders reportedincreased use of the Internet. More than 20% of trading roomsimplemented new risk management systems over the last year, andnearly a third of those surveyed noted advances in sophistication;in implementation of value at risk; and in systems, controls andprocedures.

According to survey results, the greatest impact on energymarkets overall comes from an increase in cross-commodity trading.Traders predicted further growth and opportunities over the nexttwo years, as well as continued development of mixed andderivatives trading. Also predicted are increased competition,market instability, and restructuring.

Of 37 companies cited by survey respondents, Enron, Vitol, andMorgan Stanley had the top three trading rooms, followed by J Aronand BP and Koch, which tied for fifth place.

The Saladin Report will be available Monday from Saladin and onthe Saladin Web site at

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.