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Quantitative Finance · Glosario

¿Qué es Market-based rate authorisation?

Definition 13.11 Markets III: Commodities, Energy and Crypto · Capítulo 13 — Getting Access: Commodities and Power

Market-based rate authorisation is the permission by the US Federal Energy Regulatory Commission for a seller to make wholesale sales of electric energy, capacity and ancillary services at negotiated prices, granted to sellers that show they and their affiliates lack, or have mitigated, market power.

Three routes into a year of 50 MW baseload German power (EUR 37.2 million of notional), with illustrative margin, fees and funding rates: the exchange ties up the most cash, the OTC route the most bank credit, the physical route the least collateral but the most staff and imbalance risk. Data: the chapter’s tutorial.
Figure 13.3. Three routes into a year of 50 MW baseload German power (EUR 37.2 million of notional), with illustrative margin, fees and funding rates: the exchange ties up the most cash, the OTC route the most bank credit, the physical route the least collateral but the most staff and imbalance risk. Data: the chapter’s tutorial.
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