NEW YORK, Aug. 23, 2001 — Electricity trading continued to move online in the past six months, but most wholesale power deals are still being done through traditional voice brokerages, the latest Energy Argus survey has found. Internet-based trading now makes up 38% of trading in the US, up from 28.5% in February and 25% in April 2000, according to Argus data.
Most online trading is done through either IntercontinentalExchange or EnronOnline, each of which have more than a third of the electronic market, the survey of 40 power traders found. However, another 24% of the transactions are completed through a variety of other platforms, including DynegyDirect, Bloomberg Powermatch and TradeSpark.
Although their market share has declined from 75% two years ago, traditional brokers continue to process most power trades, due to their ability to offer options and other derivatives, their dominance in the short- term physical markets and some trading houses’ reluctance to embrace online technology.
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