Clear in present danger

Energy companies are crying out for clearing solutions to reduce their counterparty credit risk. James Ockenden looks at new initiatives from London-based power exchange UKPX and German firm Clearing Bank Hannover

London-based power exchange UKPX has already launched its clearing service for UK power and natural gas and German power, while Clearing Bank Hannover (CBH) is expected to start clearing German power in the second half of October.

The introduction of these services couldn’t be more timely. Counterparty credit risk troubles have had a devastating effect on energy trade volumes, not just in the US, but across Europe. In fact, one of the biggest energy brokers in Europe has reported that its

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