With the deterioration of top energy traders' financial positions, the drop in their credit ratings, a reshuffling in their rankings, and the absolute disappearance of several energy trading platforms, electric companies and regulators are debating what structural reform energy trading needs and, indeed, what the trading world will look like. A company with a strong financial position and healthy rating may be able to develop unsecured, highly structured contracts on strength alone; or parties to bilateral contracts can share risk between them. In a market where many parties have financial positions all over the board, the clearinghouse concept―which can provide credit enhancements and minimize the impact of price volatility―is one more option to explore.
展开▼
