Abstract
For several years, prices and volumes on energy derivatives markets have been increasing at a tremendous rate. Such sustained growths naturally give rise to questions. Should we worry about such a development? Has it gone too far? Are derivatives markets really characterised by a high leverage effect, by opacity and liquidity problems? Do all these markets and transactions really respond to a need? Should we restrain the transactions of speculators in such markets, before they introduce excess volatility, capable of destabilising the underlying physical markets? This chapter proposes answers to these questions, or at least part of an answer, whenever it is possible. It focuses on derivatives markets,1 and more specifically on energy derivatives markets.
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© 2009 Delphine Lautier and Yves Simon
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Lautier, D., Simon, Y. (2009). Energy Finance: the Case for Derivatives Markets. In: Chevalier, JM. (eds) The New Energy Crisis. Palgrave Macmillan, London. https://doi.org/10.1057/9780230242234_9
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DOI: https://doi.org/10.1057/9780230242234_9
Publisher Name: Palgrave Macmillan, London
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