Does it Matter Who Trades Energy Derivatives?
Review of Environment, Energy and Economics, March 2012
8 Pages Posted: 28 Mar 2012 Last revised: 1 May 2012
There are 2 versions of this paper
Does it Matter Who Trades Energy Derivatives?
Date Written: March 1, 2012
Abstract
In the past decade, financial institutions have assumed an ever greater role in energy derivatives (or “paper”) markets. Numerous recent studies provide novel evidence of this “financialization” and analyze the extent to which it helps explain an important aspect of the distribution of energy returns. In this paper, we summarize their findings, identify some questions that remain unanswered, and discuss what data or theoretical breakthroughs could shed light on those issues.
Keywords: Financial Institutions, Energy Derivatives, Speculation, Financialization, Cross-Market Linkages
JEL Classification: G10, G12, G13, G23
Suggested Citation: Suggested Citation