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.