Despite being a multitrillion-dollar global industry, energy markets have yet to adopt industry-standard, widely accepted methods for XVA pricing, model analytics and risk management.
As the energy sector has recently experienced extreme fluctuations in price and other dynamics due, in part, to pandemic-related and geopolitical effects, in this paper we look at some of the challenges energy traders face when seeking to apply XVAs to their derivatives transactions.
A number of key factors are addressed, including:
White paper | The Value of Managed Services for Trading and Risk Management