MARKET OVERSIGHT FOR CAP-AND-TRADE:
EFFICIENTLY REGULATING THE CARBON DERIVATIVES MARKET
This paper is the third in a five paper series on US cap-and-trade design
Craig Pirrong is Professor of Finance and Energy Markets Director for the Global Energy Management Institute at the Bauer College of Business of the University of Houston. His research focuses on the organization of nancial exchanges, competition between exchanges, commodity markets, the relationship between market fundamen- tals and commodity price dynamics, and the implications of this relationship for the pricing of commodity derivatives.
e author gratefully acknowledges nancial support from the Energy Foundation.
C A p - A N d -T R A d E :
E f f I C I E N T LY R E G U L AT I N G T h E C A R b o N d E R I VAT I V E S M A R k E T