FTR markets critical to hedging prices, but traders say improvements needed

摘要

Financial transmission rights traders are evaluating challenges and potential improvements in the power transmission constraint markets in the wake of a nearly $50 million FTR market default in June. “Trying to get the credit policies commensurate with the risk that the trading desk teams are taking” is critical to limiting the probability of market disruptions, Mark Bulkeley, director at trading firm DC Energy, said Thursday at the S&P Global Platts Nodal Trader Conference. The entities that are trading have to have sufficient “skin in the game” to be trading in these markets, Bulkeley said, and we have to be looking at what the forward markets are telling us in terms of value.