What is market manipulation? Lessons from Barclays and Powhatan

Research output: Contribution to journalArticle

Abstract

One crucial element of restructured electricity market regulation is the need to act against firms that engage in market manipulation. Unfortunately, manipulation law is poorly developed, in part because the Federal Energy Regulatory Commission (FERC) has its confused its different roles as a prosecutor and a court. Thus, at present, there seems to have been little progress on questions of what constitutes manipulation, what evidence is needed to show manipulation, and how manipulation laws can be best applied. Currently there appear to be two different types of manipulation cases. In the first, the theory of manipulation is clear, but the evidence to support that theory is weak. In the second, while the evidence is clear, it is uncertain whether the behavior in question constitutes “manipulation.” I suggest that the proper method for advancing manipulation law would be to remove from FERC its judicial role, and send these cases directly to the federal judiciary for determinations of liability.

Original languageEnglish (US)
Pages (from-to)1-5
Number of pages5
JournalElectricity Journal
Volume32
Issue number1
DOIs
StatePublished - Jan 1 2019

Fingerprint

Market manipulation
Manipulation
Power markets
Energy
Liability
Support theory
Electricity market
Market regulation
Judiciary

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Energy (miscellaneous)
  • Management of Technology and Innovation

Cite this

@article{ce117ffdfac14732986e93b796d165d4,
title = "What is market manipulation? Lessons from Barclays and Powhatan",
abstract = "One crucial element of restructured electricity market regulation is the need to act against firms that engage in market manipulation. Unfortunately, manipulation law is poorly developed, in part because the Federal Energy Regulatory Commission (FERC) has its confused its different roles as a prosecutor and a court. Thus, at present, there seems to have been little progress on questions of what constitutes manipulation, what evidence is needed to show manipulation, and how manipulation laws can be best applied. Currently there appear to be two different types of manipulation cases. In the first, the theory of manipulation is clear, but the evidence to support that theory is weak. In the second, while the evidence is clear, it is uncertain whether the behavior in question constitutes “manipulation.” I suggest that the proper method for advancing manipulation law would be to remove from FERC its judicial role, and send these cases directly to the federal judiciary for determinations of liability.",
author = "Kleit, {Andrew Nathan}",
year = "2019",
month = "1",
day = "1",
doi = "10.1016/j.tej.2019.01.001",
language = "English (US)",
volume = "32",
pages = "1--5",
journal = "Electricity Journal",
issn = "1040-6190",
publisher = "Elsevier Inc.",
number = "1",

}

What is market manipulation? Lessons from Barclays and Powhatan. / Kleit, Andrew Nathan.

In: Electricity Journal, Vol. 32, No. 1, 01.01.2019, p. 1-5.

Research output: Contribution to journalArticle

TY - JOUR

T1 - What is market manipulation? Lessons from Barclays and Powhatan

AU - Kleit, Andrew Nathan

PY - 2019/1/1

Y1 - 2019/1/1

N2 - One crucial element of restructured electricity market regulation is the need to act against firms that engage in market manipulation. Unfortunately, manipulation law is poorly developed, in part because the Federal Energy Regulatory Commission (FERC) has its confused its different roles as a prosecutor and a court. Thus, at present, there seems to have been little progress on questions of what constitutes manipulation, what evidence is needed to show manipulation, and how manipulation laws can be best applied. Currently there appear to be two different types of manipulation cases. In the first, the theory of manipulation is clear, but the evidence to support that theory is weak. In the second, while the evidence is clear, it is uncertain whether the behavior in question constitutes “manipulation.” I suggest that the proper method for advancing manipulation law would be to remove from FERC its judicial role, and send these cases directly to the federal judiciary for determinations of liability.

AB - One crucial element of restructured electricity market regulation is the need to act against firms that engage in market manipulation. Unfortunately, manipulation law is poorly developed, in part because the Federal Energy Regulatory Commission (FERC) has its confused its different roles as a prosecutor and a court. Thus, at present, there seems to have been little progress on questions of what constitutes manipulation, what evidence is needed to show manipulation, and how manipulation laws can be best applied. Currently there appear to be two different types of manipulation cases. In the first, the theory of manipulation is clear, but the evidence to support that theory is weak. In the second, while the evidence is clear, it is uncertain whether the behavior in question constitutes “manipulation.” I suggest that the proper method for advancing manipulation law would be to remove from FERC its judicial role, and send these cases directly to the federal judiciary for determinations of liability.

UR - http://www.scopus.com/inward/record.url?scp=85059800302&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85059800302&partnerID=8YFLogxK

U2 - 10.1016/j.tej.2019.01.001

DO - 10.1016/j.tej.2019.01.001

M3 - Article

AN - SCOPUS:85059800302

VL - 32

SP - 1

EP - 5

JO - Electricity Journal

JF - Electricity Journal

SN - 1040-6190

IS - 1

ER -