They are providing hourly "bounded" futures and binary options on the Electric Reliability Council of Texas (ERCOT) markets, where the "bounding" refers to predefined floor and ceiling prices, limiting gains and losses (contract sizes are for 1MWh for specific hubs and specific hours).
The capping of payoff means there is no need for daily variation margin for the exchange to manage risk.
These contracts enable smarter (potentially AI-oriented) management of intraday volatility as reported by The AI Journal.
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