Energyforum

SEB aims to have a trading desk up and running by the start of March next year, and is in the process of recruiting traders. “We will likely launch products already during the autumn, and start trading on Nord Pool in March,” Fastesson said.

Explaining the rationale for an increasing number of banks moving into the commodities market and Nordic Power trading in particular, Fastesson noted the monumental rise in commodity prices over recent years, which has resulted in an increasing interest among customers for power trading.

The prospects of wider portfolios, diversified risk and non-correlation with other asset classes are the main reasons for the ambitions of banks and other financials in entering power trading, Fastesson said.

“It is natural for banks, who are at the centre of a network comprising investors, industries and retail businesses, to offer multi-commodity services. The interdependence between different commodity markets is apparent, with energy playing a key role in inflation.”

Fastesson illustrated his message by pointing towards the interaction between energy, agriculture, base metals, currencies, macroeconomics and geopolitical factors, saying he hoped banks might become a one stop shop for risk management and investment advisory services for utilities.”

“Ten to fifteen years ago, Nordic power traders followed the weather. Five years ago, fossil fuels and continental prices came into the picture. Recently, CO2 started playing a role. Today, banks cannot afford not to start trading power.”