OTC electricity derivatives: Are your risk management policies up to scratch?

OTC electricity derivatives: Are your risk management policies up to scratch?

Financial Services
Today, we continue our discussion about AFSL obligations looking at OTC electricity derivatives.   By Dr. Drew Donnelly, Compliance Quarter. Last time we talked about the regulatory reforms to OTC derivative transactions that have occurred over the last five years or so in Australia. And in The AUSTRAC risk management tool: Are you meeting your obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006? we talked about risk management procedures in relation to the anti-money laundering and counter-terrorism regulatory regime. In today’s piece, our second article on the regulatory framework for derivatives in Australia, we discuss an Australian Securities & Investments Commission (ASIC) review of risk management policies and procedures for participants in the OTC electricity derivative market and look at a few of the areas identified in that…
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