Power proves a tough choice for Australian regulators

Sydney Australia
Sydney Harbour Bridge

The electricity derivatives market has been unexpectedly thrust into the spotlight in Australia, where regulators are being faced with a difficult decision over whether to include it in the country’s plans to regulate the wider market for over-the-counter products.

On one hand, regulators are eager to conform to commitments made by the Group of 20 (G-20) in September 2009 to enforce the use of exchanges or electronic execution venues for standardised OTC trades, as well as central clearing and t