Spot Market Clearing

Recent years have seen a growing awareness of credit issues in the energy industry, and improved efforts to manage these risks. Despite this trend, however, the credit risk protections employed by most electricity spot markets remain rudimentary, placing participants at risk of receiving a socialized share of large, unpredictable and unhedgeable losses. Spot Market Clearing offers a comprehensive solution to this problem, leveraging the proven clearing house infrastructure of futures markets, and extending it, to provide robust counter-party credit protection for spot markets in electricity.