Energy Trading
Our Energy Trading team is widely recognized as an international
leader in its field. We work with large multinational and domestic
corporations, as well as government bodies, regulators and market
organizations, providing legal services on a multi-jurisdictional
and domestic basis.
We advise on all aspects of the energy trading market, including
the key trading issues, the physical market, the financial services
regulations and the credit risk management.
Our multidisciplinary team has a wealth of experience. We draw
on the expertise of lawyers from our energy and infrastructure,
financial markets, derivatives, commodities, financial regulation,
environmental and technology practices to offer a genuinely
leading-edge service.
Our lawyers have been deeply involved in policy development and
many of the initiatives that underpin energy trading
internationally. In the UK these include the introduction of UK and
international climate change mechanisms and drafting the UK’s
Network Code and the Balancing and Settlement Code. We are also
very active in all of the relevant industry associations, including
FOA (Futures and Options Association), ISDA (International Swaps
and Derivatives Association) and EFET (European Federation of
Energy Traders).
In the US, the team advises numerous clients, including
financial institutions, private equity and hedge funds and energy
companies on emissions and energy trading and related issues. The
team has extensive experience advising on environmental law and, in
particular, on emissions and electricity trading. For example, team
members have advised on California’s Climate Change Law and
strategies to develop and sell carbon offset credits on the
US-based voluntary registries. They have advised on a variety of
emission “credit” regulatory procedures, aligning environmental
improvements with clients’ business objectives. Members have served
on the joint committees of the ABA, EMA and ACORE for the creation
of the “Standardized Renewable Energy Certificate Agreement.” In
addition, team members advise numerous clients on a variety of
issues involving the organized electricity markets, with a focus on
financially traded products such as transmission congestion hedge
instruments and virtual energy markets. Team members regularly
advise clients on physical electricity transactions, natural gas
supply and transport and related financial transactions under the
EEI Master, NAESB and ISDA forms.
We have advised French authorities on commodity trading,
assisting them in the drafting of the new law amending the Monetary
and Financial Code. We have also advised French authorities on
climate change mechanisms and, in particular, on the implementation
in France of the EU emissions trading scheme. In Russia, we have
advised a Russian oil company on a landmark structured oil price
hedging in the run-up to the Iraq war.
We offer broad expertise, an outstanding track record and a deep
understanding of the energy trading sector and its underlying
products.
Areas of Focus:
- Establishment and clearing of new
exchange-traded energy products
- Establishment, issuance and transfers of
carbon and renewable energy certificates
- Over-the-counter (OTC) and exchange-traded
environmental commodities and derivatives
- Energy regulation
- Developments in regulatory oversight of markets
for environmental commodities
- Financial services and regulatory law;
- New product development
- Clearing
- Liberalization and commercial contracting
- Counterparty insolvency
- Netting and risk management advice