THE HUMAN ELEMENT in Electronic Trading

摘要

For quite some time, people have known that market liberalization and the transition to competitive wholesale electricity markets require new trading expertise, systems, and exchanges. With a liquid market―one that has many trades, choices, and dollars―electronic trading can provide risk management tools―and that furthers commoditization, keeps the market liquid, changes the role of traders and brokers, and creates more arbitrage opportunities globally for energy traders. Electronic trading can create greater price discovery, which is critical for structured financial products that need deal flow and data. It is also a driver for over-the-counter (OTC) market liquidity rather than futures trading. (We may even see electronic exchanges begin to bundle and sell their data just as brokers have done.)