TradersNews Energy launches hourly Cinergy hub index
Award-winning senior analyst Bobette Riner developed the index in response to traders' requests for ways to hedge their risks against the market's volatility. The first of several hourly indexes planned by TradersNews, a service of Internet Publishing Group, is expected to become the benchmark for financial hourly trading and for hedging instruments such as swaps and spreads. The TNI also will allow traders to extrapolate long-term pricing and determine power replacement costs.
"It keeps the market honest," said Chris Pendergraft, manager of real-time trading at Duke Energy Trading and Marketing. "It lets you know if you're buying in at the right level, and lets you get the best value. If you're short, it's just the converse," he said. "You make sure you didn't get run over in the market."
The Cinergy hub hourly index tracks the range and weighted average price of trading done for each on-peak hour, Monday through Friday. The weighted average index for the day factors in the volume done for each on-peak hour that actually traded. If no trades are reported for an hour, "indicative" pricing – derived from the tightest bid/ask spreads for that period – is provided. The formal launch of the index follows six weeks of beta testing.
Designed by traders, for traders, TradersNews Energy provides real-time news and market commentary for electric power and natural gas traders. TradersNews helps these professionals make smart decisions by providing insightful analysis and news that moves the markets – filtering out the "noise" found on more general industry news wires. Based in Houston, TradersNews is a service of Internet Publishing Group, Inc.
Edited by Stephen Heiser