Cargill International plans to hire a derivatives-savvy manager for its financial markets group's coal trading operations in Geneva. The company currently trades over-the-counter coal derivatives and is also planning to start physically settling coal derivatives, according to Peter Bishton, head of the power generation team in Geneva. The coal team is currently part of the power generation team. The hire will report to Dave Rogers, president, who is responsible for the company's international trading business. He splits his time between Cobham, U.K., and Geneva and was unavailable for comment.
Bishton noted the coal trading industry has increasingly moved toward using synthetic indices for trading purposes, particularly since the demise of Enron. Since then, virtually all over-the-counter coal trading is referenced to underlying average price indices, he said. "We're looking for someone who's happy working in an environment that also has a derivatives element." The hire would be responsible for building a physical and trading business in coal with Cargill's existing power clients.
