complementary congestion hedging instrument to function effectively. This paper investigates how exposure to locational price … locational hedging instruments, which are often overlooked in the academic literature. As FTR design depends on market …

regression results indicated a positive and significant association between hedging derivatives and bank performance, while … derivatives for hedging does not enhance value. Regarding the practical implications of this study and banking sector soundness … in derivative markets do not surpass their benefits. Hedging through derivatives may not translate into higher bank value …

risk – under the new demand and supply-side dynamics and assesses the effectiveness of a main financial hedging instrument … operational solutions as well as trade-off considerations in financial hedging instrument design, thus offering a potential …

The literature on derivative pricing in illiquid markets has mostly focused on computing optimal hedging controls, but … and the mechanical price impact and temporary cost-of-hedging. To address this gap, we introduce a counterfactual informed … observer and derive a hedging framework that jointly accounts for transaction costs and permanent market impact. Numerical …