A Federal Energy Regulatory Commission (FERC) order issued in 1992 to restructure the US gas pipeline industry. It relaxed service requirements on pipeline firms and gave customers greater flexibility as to whom they could buy from by separating gas sales from transportation. This ‘unbundling’ involved the extension of transportation to include storage and allowed end-users, with firm transport contracts, to sell unused capacity. FERC has issued three orders related to FERC order 636: numbers 636-A, 636-B, and 636-C.
Commodity trading and risk management is a subject that is necessarily complicated, and is becoming more so. The Energy Risk Glossary seeks to disentangle and clarify the jargon by providing definitions of commonly used energy and commodity market terms.
These include definitions related to a variety of underlying energy products, as well as technical terms about the many instruments and benchmarks used by energy market participants.
Many of the most recent terms to have been added to our glossary stem from the actions of regulators since the 2008 global financial crisis. The onset of rules, such as the US Dodd-Frank Act and European Market Infrastructure Regulation, has markedly increased the cost and complexity associated with commodity trading. Perhaps they have also increased the need for a handy reference guide such as this.
The glossary is extensively cross-referenced, making for easy and thorough searches. We hope you find the latest edition of the Energy Risk Glossary to be a useful resource.
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