The natural gas and power sector experienced its own financial crisis with the collapse of Enron in 2001. Since then, it has pioneered OTC clearing and exchange traded derivatives, finds Elise Coroneos.
More than any
other market, the power and natural gas sector
has been preparing
for the implications of Dodd-Frank Wall Street Reform and
Consumer Protection Act for the better part of a decade.
The collapse of
Enron in Decmber 2001, led to the no-nonsense implementation of
measures such as centralised clearing in the trading of energy
and power derivatives contracts as a matter of industry
In the wake of
the financial crisis, the industry is following suit
implementing mechanisms that, thanks to
Enron, have already begun to take hold in the natural gas and
power derivatives markets. Today, a vast number of contracts in
the sector in the US are cleared on CME’s
Clearport, launched in May 2002, or via the Intercontinental
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |