from International Institutions and Global Governance Program, Greenberg Center for Geoeconomic Studies, and Renewing America

Improving Energy Market Regulation

Domestic and International Issues

February 4, 2011

Report

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Fossil Fuels

Economics

Overview

Highs and volatile energy prices have driven the regulation of commodity financial markets to the forefront of the U.S. and G20 policy agendas, including the upcoming 2011 G20 meeting in France. Integrated commodity markets require international policy coordination, but not all policy initiatives are equally desirable. Improving Energy Market Regulation examines a range of policy options at both the domestic and international levels. 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.

Daniel P. Ahn
Daniel P. Ahn

Adjunct Fellow for Energy

Download the Italian translation of this report [PDF].

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