Using Virtual Bids to Manipulate the Value of Financial Transmission Rights

This article describes the economics of market manipulation using an applied electricity market construct: using virtual bids in conjunction with FTRs. The model was applied in the Federal Energy Regulatory Commission's case against Constellation Energy Commodities Group and is applicable to a variety of cases alleging the use of uneconomic trading to trigger a manipulation, such as those alleged against JP Morgan, Deutsche Bank and Barclays.