A trader may exceed position limits set by the Commodity Futures Trading Commission (CFTC) if:
1) the transaction or position is a substitute for transactions in a physical marketing channel; it is an economically appropriate means of risk reduction;
2) it arises from the potential change in the value of assets, liabilities or services;
3) it reduces risks resulting from a swap that was executed opposite a counterparty for which the transaction would qualify as a bona fide hedging transaction under the first three criteria; or
4) it reduces risks resulting from a swap that satisfies the first three criteria.
The Energy Risk glossary, now in its 7th edition, provides an at-at-glance explanation of the many specialised terms and acronyms used in energy trading and risk management.
This year, the guide has been updated by former director of enforcement at the Commodity Futures Trading Commission, Gregory Mocek, now head of the Energy and Commodities Enforcement Defense team at Cadwalader, Wickersham & Taft, and Benjamin Chesson, associate at the firm. Energy Risk would like to thank them both for their input into this edition, which benefits greatly from their experience and insight into energy markets.
Almost 100 new entries and revisions have been made this year. Some of these reflect the increasing role of regulation on the market, with terms such as the Lincoln Amendment and the Volcker Rule appearing for the first time. There are two new entries and an update pertaining to hydropower, reflecting the increasing role of renewables in electric power generation.
The glossary is extensively cross-referenced, making for easy and thorough searches. We hope you find it a valuable reference tool in the months to come.
Get similar articles delivered to your inbox
Canada, 18th Jun 2013
UK, 3rd Jul 2013
UK, 26th Sep 2013
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.
Updating your subscription status
Risk IPad Apps