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Energy Trading

Energy trading, whether it be oil, gas or power derivatives or physical products, is central to the function of energy markets globally.

The volatility in energy markets makes energy products a valuable commodities to trade, and almost every power project or M&A deal in the sector will require a significant amount of advice in relation to trading and hedging.

Allen & Overy has capitalised on its energy sector knowledge and market leading trading and derivatives practice to provide its clients with the most sophisticated advice on this highly specialised subject in all jurisdictions of the world. These clients include NOCs (National Oil Companies), IOCs (International Oil Companies), Independent Oil & Gas Companies, and funders (debt and equity), power project developers, integrated power utilities, energy traders and governments.

Allen & Overy advises clients on issues such as physical commodity trading (short-term and long term); financial commodity trading contracts specifically relating to energy and emissions allowance markets (including hedging energy price risk and related counterparty credit risk); shipping and trading disputes. Allen & Overy also builds on its strong experience in trading and derivatives to advise clients on the set up of physical commodity trading platforms. Significantly we drafted the original form of Grid Trade Master Agreement which forms the basis of all bilateral electricity trades in the UK. We have subsequently advised several large and active market participants on contractual and regulatory issues in relation to gas and power trading.

We also have a market-leading financial regulatory practice, with lawyers who specialise in advising energy derivatives players on compliance, market abuse issues, and latest developments under EU Directives such as MIFID. 

News & insights

Climate change mitigation; climate change adaptation; net zero; decarbonisation; COP26; CBD COP15

Blog Post: 24 SEPTEMBER 2021

The CBAM proposal - three key questions

As part of the European Commission’s Fit for 55 package, which aims to implement the European Union’s target of cutting greenhouse gas emissions by 55% by 2030, the Commission proposed the…

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image of glazed skyscraper

Publications: 08 JULY 2021

A rise in hydrogen-related M&A activity globally

As international pressure mounts for urgent responses to climate change, there are signs that, after several false dawns, hydrogen is finally emerging as a key component in the transition from fossil…

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aerial image of dense forest

Publications: 02 APRIL 2021

The people’s climate case declared inadmissible: not all climate litigation roads lead to Rome

In the past years (and months), there has been a growing wave of climate change litigation cases, and the cases where plaintiffs have (successfully) invoked fundamental rights are increasing. In our…

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City, sun reflecting from the glass buildings

Publications: 19 JUNE 2020

European Commission targets foreign subsidies causing market distortions

As part of a broader effort to reshape the EU’s trade policy, the European Commission (EC) proposes to expand its toolbox to tackle foreign subsidies undermining the level playing field in the EU’s…

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