Contract standardisation could create risk say experts
Energy and commodities market contract standardisation will lead to more risk for trading, reporting and processing through technology and will make risk assessment more difficult, says the founding father of energy risk management Shannon Burchett. Commodity end-users will find it more difficult to hedge their exposure, he adds.
Burchett, chief executive officer of advisory firm Risk Limited Corporation, and other market participants are concerned that while contract standardisation aims to
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