Hedgers’ dilemma over exchange rules
Pauline McCallion speaks to industry experts to find out what new derivatives regulations could mean for the end-users of energy hedging products
Re-routing all but the most complex derivatives transactions on to exchanges and imposing clearing requirements could permanently change the structure and operation of the energy sector. Experts foresee changes throughout the hedging process - from the range of market participants to the types of products hedged and transactions used by end-users.
This shake-up could pave the way for a new market structure and encourage innovation. On the other hand, it could result in increased costs for energy
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