Electronic Energy Trading in Asia
The energy industry is significantly conducive to the use of risk management tools due to its underlying price volatility, and is a logical candidate for the use of an array of electronic trading platforms. Electronic commerce, however, is only slowly transforming energy markets. The mature markets of oil and gas trading as well as the emerging markets for electric power, emissions, and weather trading are ripe for trading on electronic platforms. Both price discovery and credit risk will be enhanced using the technology of the Internet. The market drivers for the changing face of energy trading range from open outcry to screen trading for price discovery. This will be particularly true in the Asia Pacific region due to the lack of exchange-traded financial instruments for energy.
KeywordsEnergy Market Price Discovery Market Maker Market Liquidity Future Exchange
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