Can the boutique energy brokerage survive Dodd-Frank?
The Dodd-Frank Act is set to drastically reshape the over-the-counter energy derivatives brokerage industry in the US, as small firms in particular are threatened with the loss of their independence. Alexander Osipovich finds out how brokers are coping with the challenge
For many years, US government oversight of over-the-counter derivatives was minimal, and there weren’t many barriers to launching a new brokerage specialising in OTC energy products. That led to an abundance of boutique brokerages, some of them tiny enterprises with just two or three brokers and quirky names such as ‘It’s All Good Energy Brokers’. Though estimates vary and there is no official
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
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
As LLMs spread, quants confront ‘lexical risk’
Users are finding the uncertainty in GenAI models is hard to measure
Risk managers go softly-softly on AI adoption
ERM teams still in testing mode for most AI use cases, latest Risk Benchmarking study shows
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
Four in five banks report breaching risk appetite in past year
Risk Benchmarking: Those reporting no breaches run skinnier appetite frameworks, despite similar governance mechanisms
Slimmed-down and automated, ERM seeks a seat at the top table
Latest Risk Benchmarking exercise finds ERM growing in influence, even as headcounts shrink
