Risk management: Cost-effective transaction monitoring

Abstract

Over the last few years, the world of trading, and in particular, energy and commodities trading, has undergone a dramatic transformation. Most notable is the shift to over-the-counter trading, introducing quick, efficient, and low-cost trading. However, as a by-product of this “brave new world,” individuals and organizations have taken advantage of these new arbitrage opportunities to profit through market manipulation. Current events are rife with examples of individuals and organizations who took advantage of these opportunities. A couple of examples include the following: