Energy Finance: The Case for Derivatives Markets

Delphine Lautier

Chapter 8 in The New Energy Crisis, 2013, pp 217-241 from Palgrave Macmillan

Abstract: Abstract For several years, the number of energy derivatives markets has been increasing at a tremendous rate. The same is true for the prices and the transactions volumes of energy futures contracts, with the noticeable exception of the recent crisis, in 2008–9. Such sustained growths naturally give rise to questions. What are the real dangers of such a development? Are derivatives markets always characterised by a high leverage effect, by opacity and liquidity problems? Do all these markets and transactions really respond to a need? Should the regulating authorities restrain further the transactions of speculators in such markets, before they introduce excess volatility, capable of destabilising the underlying physical markets? This chapter proposes answers to these questions, or at least part of an answer, whenever it is possible. It focuses on derivatives markets,1 and more specifically on energy derivatives markets.

Keywords: Credit Risk; Hedge Fund; Future Market; Future Price; Future Contract (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-02118-2_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137021182

DOI: 10.1007/978-1-137-02118-2_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().