Risk.net

Clear in present danger

-124-jpg
London-based power exchange UKPX has already launched its clearing service for UK power and natural gas and German power, while Clearing Bank Hannover (CBH) is expected to start clearing German power in the second half of October.

The introduction of these services couldn’t be more timely. Counterparty credit risk troubles have had a devastating effect on energy trade volumes, not just in the US, but across Europe. In fact, one of the biggest energy brokers in Europe has reported that its vo