Publication

This paper examines a range of policy options at both the domestic and international levels regarding the regulation of energy financial markets. It recommends that policymakers prioritize areas that are better understood to improve market efficiency, particularly improved physical and financial transparency and centralized clearing, over stricter capital and margin requirements and position limits. Even these simpler initiatives face significant logistical and political challenges, and in many cases the United States should proceed unilaterally even as it seeks international cooperation.