OTC energy derivatives did not cause the crisis

Over-the-counter derivatives were blamed for the financial crisis, but now the conversation must turn to finding solutions, not apportioning guilt

Mark Pengelly

The 2008 financial crisis had many causes: herding behaviour, a culture of runaway debt, terrible risk management, second-class regulation and the search for ever-greater returns by foolish investors, to name but a few. But in the popular narrative, much of the blame will always be attributed – rightly or wrongly – to over-the-counter derivatives.

Even the fiercest critics of derivatives recognise they have some social value. After all, farmers have been hedging their production with