Barclays Capital says it recently completed its first US power swap, a trade that represents the start of a “material expansion” of its commodities business in the Americas.
“We are now able to trade swaps and futures contracts on electricity for five delivery points in the Northeast US — the New York, New England and PJM (Pennsylvania, New Jersey, Maryland) pools,” says Joe Gold, Head of Commodities, Americas.
“This capability allows us to respond to our clients’ needs in this sector, and we expect to respond further in the months to come when we begin trading physical contracts for both electricity and natural gas.”
The firm also recently received a power marketing license from the Federal Energy Regulatory Commission (FERC), which allows the firm to trade physical gas and power.
Barclays Capital currently trades crude oil and refined products, natural gas and electricity derivatives from its New York office. Barclays Capital also offers global products in energy derivatives, base and precious metals derivatives, and physical products for European electricity and natural gas.