Tripping around credit quality
Round-tripping has been one of the major scandals revealed by the 2002 energy crisis, with many energy firms accused of taking part in the practice and the regulators investigating hard. A round-trip or ‘wash’ trade involves executing simultaneous sell and buy trades for identical volumes of electricity at identical prices at the same delivery point and delivery time. The aim is not to make a profit, but simply to achieve a bigger trading volume.
From a general credit viewpoint
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