Tacking liquidity risk in illiquid power markets
The strong power market growth evident in western Europe is spreading eastwards but with emerging market opportunities come additional risk. Katie Holliday talks to market experts about how best to approach the issue of mitigating liquidity risk
Emerging markets hold unique opportunities for energy and commodities players and many are keen to establish a strong presence in a new product or region before their competitors. But immature markets are high-risk environments and despite potential for huge profit margins, tackling liquidity risk can pose a challenge.
Liquidity defined
Liquidity can be defined as the ease with which a trader can
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
ERM’s influence is growing as its ranks are shrinking
Risk Benchmarking: Mandates expanding to include new threats like AI and geopolitical risk, but majority report flat to down headcount
Why AI agents are like staff you can’t trust
Uncertainty implicit in GenAI systems means risk managers have to take a more adversarial approach
Regulatory risk aversion contributed to SVB failure – Bowman
Supervisors ‘knew, or should have known’ about risks a year before bank’s collapse, says Fed vice-chair
Risk managers go softly-softly on AI adoption
ERM teams still in testing mode for most AI use cases, latest Risk Benchmarking study shows
As LLMs spread, quants confront ‘lexical risk’
Users are finding the uncertainty in GenAI models is hard to measure
Limit band risks stale prices in 24/7 markets, SEC warned
Roundtable participants say proposed restrictions could leave stocks trading at unrealistic values
Most banks embed risk appetite into business decisions
Risk Benchmarking: Second line more likely to be shut out when it comes to product launches or market entry
Op risk data: KKR crushes antitrust fine record over pre-merger filing fails
Also: Dealers pay up for Mexican bond-rigging scandal; missing AML checks at UBS. Data by ORX News