Barrier to entry

Bank of America and UBS are still trying to overcome obstacles that could prevent them entering physical power trading in the US. Federal Energy Regulatory Commission regulations represent the biggest obstacle. Paul Lyon reports

Rumours are circulating that investment bank Citigroup is about to hire Joe Toussaint – formerly vice-president of marketing and operations at energy firm Cinergy – as head of its gas and power trading group. Neither Toussaint nor Citigroupofficials were available for comment. But even if the bank hires Toussaint – whoinjected a “warrior mentality” into Cinergy traders, says Cinergy’s1999 annual report – it may find kick-starting a power trading businessan uphill battle.

Most energy merchants

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