A safety net for energy traders
Will the Edison Electric Institute’s master netting agreement help reduce credit risk for energy traders? Kevin Foster takes a look at this new initiative
Three years after the introduction of its first payment-netting contract, the Edison Electric Institute (EEI) has unveiled the first standardised master netting contract* for the energy sector – and it couldn’t have come at a more crucial time. The EEI, a Washington, DC-based association of shareholder-owned electricity firms, hopes the introduction of the agreement will help restore some faith in the struggling energy trading sector. Netting – or pooling – of collateral requirements
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