Stricter EU collateral rules threaten Nordic power market

Tighter EU collateral standards set to come into force in March 2016 may hurt liquidity in Nordic electricity derivatives, market participants say

Fjord in Norway
The Nordic power market is among Europe's most liquid

The Nordic electricity derivatives market – one of the most liquid and mature power markets in the European Union – may be undermined by EU financial regulations after officials in Paris pushed through strict new standards on acceptable collateral in cleared derivatives trades despite the vehement objections of Scandinavian energy firms.

"We can't see that this rule brings any benefits in terms of making the market safer or more transparent, and in fact it actually risks damaging those things,"

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 copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

CTRM systems 2024: market update and vendor landscape

A Chartis report on commodity trading and risk management systems that considers its different applications and addresses the market and vendor dynamics to determine the long-term and structural impacts of the overarching market evolution on the…

Chartis Energy50 2023

The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here