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They are bilateral contracts that give rise to a jumble of erratic price quotes.
Rather, the deals were done as bilateral contracts directly between utilities or power marketers.
Many derivatives are now traded as private, bilateral contracts, outside the purview of regulators and other investors.
On any day, each trader's thousands of bilateral contracts boil down to a single net position owed to or by its counterparties.
That would curtail the practice of trading derivatives as private bilateral contracts, which would help to prevent destabilizing risks from building up without regulatory oversight.
That would minimize the practice of trading derivatives as private bilateral contracts, in which the price is whatever the bank says it is.
Similar(16)
Instead of a single bilateral contract, there will be two one between a clearing-house and the original seller, and the other between the clearing-house and the original buyer.
Kim (2013) modeled a bilateral contract with order quantity flexibility.
This paper studies bilateral contracting where multiple principals negotiate contracts with multiple agents independently.
You may hear people say that a CDS is a "bilateral contract".
In deregulated electricity markets, a Generation Company (Genco) has to optimally allocate their energy among different markets including spot, local and bilateral contract markets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com