Modern Energy Market Manipulation

Andrew N. Kleit
Pennsylvania State University, USA

Product Details
15 Nov 2018
Emerald Publishing Limited
240 pages - 152 x 229mm


As long as commodity and securities markets have been in operation, market manipulation has been a serious concern. Now that many electricity and natural gas markets have been opened to competition, manipulation threatens to destroy the value of these markets as well. Yet market manipulation itself remains ill-defined, with uncertain legal and economic principles operating on both sides of regulatory proceedings. 

Andrew N. Kleit’s Modern Energy Market Manipulation offers an in-depth exploration of this crucial gray area. It presents a coherent definition of market manipulation, and drawing upon the substantial available legal evidence, it examines two categories of manipulation cases: those in which the allegations clearly fit the definition of manipulation but in which the facts of the case are unclear, and conversely, those in which the facts of the case are clear but in which it is uncertain whether they actually constitute manipulation. Throughout his discussions, Professor Kleit casts a critical eye not only on energy companies but also on the legal decisions and processes at the Federal Energy Regulatory Commission, which acts as both prosecutor and judge in manipulation matters, and which has consistently sided with its own staff and against defendants. As this book deftly shows, both defendants and prosecutors alike have benefitted from the ambiguities at the heart of existing definitions of market manipulation. 

Modern Energy Market Manipulation is essential reading for regulators, jurists, litigants, and business managers, and it is of interest to anyone who wants to learn about the enforcement mechanisms of federal regulators.
Chapter 1. What is Manipulation? What is Not Manipulation?
Chapter 2. Theories of Manipulation
Chapter 3. Some Historical Manipulation Cases, or Understanding Why the Hunt Brothers Did Not Manipulate the Silver Market
Chapter 4. DiPlacido: The CFTC Confuses Manipulation and Hedging 
Chapter 5. Introduction to Electricity Markets
Chapter 6. Were California's Electricity Markets Manipulated, and by Whom?
Chapter 7. Deutsche Bank: What Should the Legal Rule for Trading Financial Transmission Rights Be?
Chapter 8. Amaranth and Brian Hunter: You Certainly Look Guilty
Chapter 9. BP America: Let the Best Story Win!
Chapter 10. Barclays: The Defendant Meets Mr. Kafka
Chapter 11. Rumford and Silkman: Money for Nothing, Kicks for Free
Chapter 12. Powhatan: What is Manipulation?
Chapter 13. Some Final Thoughts

Andrew N. Kleit is Professor of Energy and Environmental Economics and MICASU Faculty Fellow at the Pennsylvania State University. With a Ph.D. in Economics from Yale University, Professor Kleit is the author of over 70 refereed academic articles, focusing in the areas of energy regulation and antitrust. He is also the editor of two previous books about electricity markets.

Professor Kleit has extensive government service, having worked at President's Council of Economic Advisors, the Federal Trade Commission, the Canadian Competition Bureau, the Commodity Futures Trading Commission and the Federal Energy Regulatory Commission.

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