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Does it Matter Who Trades Energy Derivatives?

7 Pages Posted: 28 Mar 2012  

Bahattin Buyuksahin

Bank of Canada

Michel A. Robe

University of Illinois at Urbana-Champaign

Multiple version iconThere are 2 versions of this paper

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

Buyuksahin, Bahattin and Robe, Michel A., Does it Matter Who Trades Energy Derivatives? (March 1, 2012). FEEM (Fondazione Eni Enrico Mattei), Review of Environment, Energy and Economics (Re3), March 2012. Available at SSRN: https://ssrn.com/abstract=2029767

Bahattin Buyuksahin

Bank of Canada ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada

Michel A. Robe (Contact Author)

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

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