Power companies will face major collateral problems that will affect their operational capabilities if over-the-counter derivatives products are forced onto an exchange, as proposed in the overhaul of financial regulation approved by the US Senate recently, says a market expert.
"People turn pale when this topic comes up," says Art Altman, who manages research in forecasting and risk management for the power markets at the Electric Power Research Institute. "Companies use creative forms of
- Brexit novations ‘on hold’ to gain reg relief
- Banks hope final FRTB rules will ease NMRF burden
- Functional programming reaches for stardom in finance
- People moves: Bank of America names new Apac chiefs, Wilkinson leaves LGIM, Lloyds loses Coutte, and more
- Mifid data publishers drag feet on Esma guidelines