Michael F. Newsham
2424 N Clark St. # 210
Chicago, Il 60614
773-896-3603
newsham_michael@hotmail.com
Tennessee Valley Authority –Chattanooga, TN
2009-2011
Risk Analyst-Financial Services
Responsible for providing leadership for the measurement, evaluation, and management of TVA’s energy commodity portfolio
including analysis of current and potential portfolio positions for TVA’s overall financial performance and risk profile while
developing portfolio risk measures and guidelines consistent with TVA’s risk management objectives.
Participated in developing hedging strategies while maintaining compliance with TVA’s risk management policy and reporting of the
portfolio risk book. Provided policy and trading compliance monitoring for energy and related commodity market transactions along
with risk management for the energy market portfolio, including the measurement of indicators, forward curves, and other quantitative
measures.
Led efforts to set strategy and objectives for hedging risks associated with the energy market portfolio. Monitored hedge strategies for
energy related products including electricity, natural gas, fuel oil, emission allowances, etc.
Worked with FS (financial services) groups and other TVA organizations to support evaluation of competitive strategies, market
management strategies, long-term plans, and enterprise risk assessments as they related to the energy commodity portfolio.
Allegro Development – Dallas, TX
2008-2009
Product Risk Manager
Provided Risk Management skills for Covariance, Risk Metrics, Historical Simulations, Quadratic and Monte Carlo Simulations while
overseeing option valuations (all Greeks) for embedded option analytics for spread options and various option model analytics;
including Black and Black Scholes , Cox-Ross Rubenstein, Garman and Whaley. Set up correlation curves and overall strong Risk
Management suggestions for enhancing the use of Allegro products.
RPMG LLC – Shakopee, MN
2007-2008
National Ethanol Marketing Manager
Market and priced Ethanol for 21 Plants consisting of 1.2 Billion Gallons of Ethanol output on a yearly basis. Provided market
intelligence on the corn and related grain markets; as well as RBOB vs. Ethanol Swaps and Pricing. Did analysis of corn crush margins
vs. Ethanol in locations across various locations while also providing market intelligence on RINS valuation and hedging suggestions.
INTERNATIONAL TRADING GROUP – Glenview, IL
2006-2007
Energy Trader
Applied algorithmic models to arbitrage commodities and their spread relationships to each other including Brent Oil, WTI Crude,
Gasoil, Heating Oil, Unleaded, Natural Gas, and Ethanol by applying various arbitrage and correlation spread methods to trading.
NEXGEN POWER, LLC – Chicago, IL
2004-2006
Director
Primary focus was on the acquisition of ethanol assets with equivalent production capacity 20 million gallons/day of ethanol.
Created hedging and trading strategies to reduce risk while assisting with the risk management analysis for a 100 million gallon Ethanol
plant and various other products.
Evaluated and make recommendations in order to purchase these assets and incorporate them into a highly diversified portfolio of
alternative investments.
NRG ENERGY – Minneapolis, MN
Senior Power and Derivatives Trader/Manager
2000-2004
Managed pricing and trading of derivatives in the Nepool, NY, PJM, and Entergy books throughout the firm. I was constantly
interacting with fuels origination and various strategy groups on all option opportunities.
Developed and implemented options pricing strategies for NRG assets using Daily, Monthly, physical and financial contracts which
generated millions in profits.
Analyzed and implemented fuel switch ability options for various plants and managed the risk associated with the hedging of these
assets. Used pro-active ideas on further revenue enhancements such as implementing costless collar hedges for anticipated fuel hedge
of assets. Expert in using Incremental and Decrement bids to simulate financial power in various nodes in PJM East and West.
EDISON MISSION ENERGY – Irvine, CA
Manager/Trader, Midwest Energy Trading
1999-2000
Oversaw the transition of ownership and subsequent management of $5 billion in Com Ed assets.
Generated profits of $3 million by creating and implementing both physical and financial swaps and agreements into Com Ed, Cinergy,
TVA, Entergy and PJM. Developed and implemented options pricing model for monthly and daily options in the power and gas
markets, which resulted in a hedge plan to reduce risk on a 3000 mw natural gas peaker.
ILLINOIS POWER – Decatur, IL
1998-2000
Manager/Trader, Energy Trading
Managed physical and financial trading of energy in the Midwest (CINERGY, ENTERGY, COMED, and TVA). Negotiated electric
energy contracts, transmission contracts, and agency agreements in compliance with Risk Management Policies and Procedures.
Utilized physical/financial derivatives and fundamental analysis as well as pricing of commodity derivatives, swaps, options, basis,
exchange-for-physical and triggers. Generated profits of more than $ 3 million by spread trading options and physical contracts.
Increased revenue in millions through the establishment and maintenance of profitable relationships with key decision-makers in the
energy-trading marketplace. Enhanced portfolio profits of other traders by teaching practical risk management skills to other traders.
FIRST CONTINENTAL TRADING L.L.C. – Chicago IL
Proprietary-Trader/Manager Equity Derivatives
1995-1998
Traded independent portfolio/book on the CBOE that identified and spread mispriced options on a volatility neutral basis using delta,
gamma, vega, theta and rho skills. Coordinated Emerging Market derivative opportunities with meetings in: Sao Paulo, Brazil, Hong
Kong, Singapore and Malaysia that resulted in plans for expansion within the firm. Facilitated negotiations that helped settle the
Barings crisis in Singapore, saving over $10 million and generating millions in profits for firm traders.
O'CONNOR AND ASSOCIATES/SWISS BANK CORP – Chicago, IL
1977-1995
Proprietary Trader/Independent Market Maker/Manager
Originated traded and managed interest rate and commodity derivatives when trading first began on the CBOT, COMEX, and
NYMEX. Instituted, traded and managed equity derivatives department on the CBOE & CBOT floor using mathematical trading
implementing delta, gamma, Vega and theta strategy trades. Enacted, and managed equity block desk operation and set up floor broker
network on NYSE. Taught various market makers on CBOE, CBOT, NYMEX, COMEX, and AMEX to trade options neutrally and
manage risk. Executed and suggested various risk management/hedging strategies to primary dealers, hedge funds and individual firms
to build a brokerage operation.
EDUCATION:
Illinois Institute of Technology, Stuart School of Business, Chicago, IL
Pursuing MBA with an emphasis in Financial Markets and Trading.
Northern Illinois University, DeKalb, IL
Bachelor of Science, Finance
PROFESSIONAL AFFILIATIONS:
Member, Chicago Board Option Exchange, 1980 – 1986
Member, Chicago Board of Trade, 1981 – 1993
Member, QWAFAFEW, PRMIA, GARP
Series 7 Brokers License