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EU rules changes may cause power market liquidity risk
Power market risk managers face a new set of liquidity and market risks if the European Union (EU) enforces proposed regulation changes, says RWE chief
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Proposed changes to EU financial regulation run the risk of removing liquidity from burgeoning power markets while increasing market risk, says Paul Dawson, head of regulatory affairs at RWE Supply & Trading.
Two key areas of concern for energy producers in the on-going overhaul of EU financial markets regulation are the dangers of increased liquidity risk resulting from central counterparty (CCP) clearing requirements and subsequent regulatory overlaps in areas such as post-trade data capture.
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