6 November 2002 – Seven leading energy brokers have set up a new trade association to strengthen themselves against recent turmoil in energy markets such as power trade.
Amerex Group, APB Financial LLC, GFI Group Inc., Natsource LLC, Prebon Energy Inc., Starsupply Petroleum LLC and TFS Energy LLC have formed the Energy Brokers Association (EBA), the companies said in a statement.
“This co-ordinated effort is being made as a proactive response to the current challenging environment in the energy markets,” the companies said.
“The association recognizes the need for all the key players in the energy markets to define and adopt reliable practices and standards,” they added.
A succession of trading scandals in the power and natural gas markets has cut liquidity as companies’ access to credit dries up.
“What we want to do as a group is to work with energy companies and industry associations as well as with government regulatory agencies to help the market emerge from the current situation,” said Alan Kurzer, a spokesman for the group.
“As the middlemen in the industry, we are unbiased … we would like to push for reliable business standards that could bring about a healthier market place for our customers … we are in a key position to bring buyers and sellers together,” Kurzer said.
The EBA will also work to clearly define the role of over-the-counter brokers more clearly, they added. Over-the-counter deals are derivative contracts traded outside regulated exchanges.
The EBA issued an open invitation to other OTC brokers to join the group.