In a congressional hearing that featured a thorough review of the El Paso market manipulation case and all the issues contributing to the serious natural gas market malfunction last year in California, FERC Chairman Pat Wood told a House Government Reform subcommittee chaired by Doug Ose (R-CA) that he does not see a need for new legislation.
Articles from Contributing
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.