Uneconomic trading, market manipulation and baseball
Regulators, including the US Federal Energy Regulatory Commission, are aggressively targeting uneconomic trading in a crackdown on potential market manipulation. Such moves have striking parallels in the history of baseball - some of which might prove instructive for commodity and energy traders, argues Shaun Ledgerwood
Regulators, including the US Federal Energy Regulatory Commission (Ferc), are aggressively pursuing instances of uneconomic trading – the practice of racking up losses in one market in order to benefit positions held in another. But prosecution of this behaviour is relatively new – and some commodity and energy traders are struggling to come to terms with the change of attitude.
Such traders ought
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