Trading Framework Research Articles

Maximizing profitability in integrated energy markets: A novel framework for multi-faceted energy trading

The emergence of Integrated Energy Systems (IESs) has shifted energy management from traditional electricity paradigms to a more diverse approach involving electricity, thermal energy, and natural gas. This study introduces a framework for an Integrated Energy Network (IEN) that enables simultaneous trading across these interconnected markets. The objective is to maximize the profitability of integrated energy companies by optimizing energy trading strategies. The proposed business strategy incorporates integrated load response, addressing constraints within electric distribution systems, heating networks, and natural gas pipelines. A three-stage process is used: information sharing in the unified energy market, energy conversion in hubs, and flexible load planning in the retail market. Flexible loads are categorized as displaceable, reducible, or transformable. A Conditional Value-at-Risk (CVaR) mean-variance model addresses market price volatility. Simulations on a test system validate the model, demonstrating its effectiveness in improving profitability and operational efficiency for integrated energy companies.

Securing oil port logistics: A blockchain framework for efficient and trustworthy trade documents.

The oil port logistics involves multiple parties including oil tanker owners, port authorities, customs, oil suppliers, and shipping companies. These parties need to exchange a significant amount of data and documentation related to cargo, such as bills of lading, customs declarations, and cargo manifests. This huge amount of data and documentation provides ample opportunities for data manipulation and corruption. Moreover, physical documentation is slow and prone to errors and manipulation. This data can be securely stored and shared between different parties in a tamper-proof and transparent manner using blockchain. Blockchain is a decentralized technology that employs secure hashing and consensus algorithms that can detect any data modification. Hence, this work proposes a blockchain-enabled immutable, and efficient framework for trade documentation in oil port logistics. The proposed framework provides timely processing of oil trade documents and ensures immutability while increasing trust among the trade entities. In addition, this work implements a private blockchain for the execution of smart contracts, which can ensure that all parties involved in the logistics process comply with pre-agreed rules and regulations. Simulation results validate the effectiveness of the proposed framework in terms of transparency, immutability, network latency, throughput, and resource utilization.

Trustworthy V2G scheduling and energy trading: A blockchain-based framework

The rapid growth of electric vehicles (EVs) and the deployment of vehicle-to-grid (V2G) technology pose significant challenges for distributed power grids, particularly in fostering trust and ensuring effective coordination among stakeholders. Establishing a trustworthy V2G operation environment is crucial for enabling large-scale EV user participation and realizing V2G’s potential in real-world applications. In this paper, an integrated scheduling and trading framework is developed to conduct transparent and efficacious coordination in V2G operations. In blockchain implementation, a cyber-physical blockchain architecture is proposed to enhance transaction efficiency and scalability by leveraging smart charging points (SCPs) for rapid transaction validation through a fast-path practical byzantine fault tolerance (fast-path PBFT) consensus mechanism. From the energy dispatching perspective, a game-theoretical pricing strategy is employed and smart contracts are utilized for autonomous decision-making between EVs and operators, aiming to optimize the trading process and maximize economic benefits. Numerical evaluation of blockchain consensus shows the effect of the fast-path PBFT consensus in improving systems scalability with a balanced trade-off in robustness. A case study, utilizing real-world data from the Southern University of Science and Technology (SUSTech), demonstrates significant reductions in EV charging costs and the framework’s potential to support auxiliary grid services.

Exploring the convergence of Metaverse, Blockchain, Artificial Intelligence, and digital twin for pioneering the digitization in the envision smart grid 3.0

The ongoing evolution of the Metaverse, digital twin (DT), artificial intelligence (AI), and Blockchain technologies is fundamentally transforming the utilization of sustainable energy resources (SERs) within smart grids (SGs), ushering in the era of smart grid 3.0 (SG 3.0). This paradigm shift presents unprecedented opportunities to establish robust and sustainable energy trading frameworks between consumers and utilities within the SG 3.0 environment. The integration of DT, AI, and Blockchain technologies in the context of the Metaverse’s smart grids, facilitated by optimized communication protocols, represents a transformative approach. AI models play a pivotal role in predictive energy trading analysis, while DT assumes a crucial role in effectively managing diverse SERs within SGs. Simultaneously, Blockchain technology holds the potential to create a trusted and decentralized environment, laying the foundation for an energy trading system within the SG 3.0 universe of the Metaverse. This visionary convergence of DT and Blockchain sets the stage for a futuristic paradigm in SGs, establishing a robust energy trading and management foundation. This paper embarks on exploring uncharted research paths and unlocking new dimensions by surveying and delving into the convergence of the Metaverse, Blockchain, AI, and DT. Its primary objective is to drive the digitization of SERs within SGs, to revolutionize energy systems. The envisioned SG 3.0 represents a significant leap by amalgamating cutting-edge technologies in sustainable energy, paving the way for revolutionary advancements in SGs’ digitization, which aligns with and contributes to achieving the sustainable development goals outlined by the United Nations.

Smart Contract Framework for Secure and Efficient P2P Energy Trading with Blockchain

Smart Contract Framework for Secure and Efficient P2P Energy Trading with Blockchain

Pioneering Emission Trading in Africa: An Architectural Design of a Blockchain-Powered Carbon Trading System

To achieve carbon neutrality by 2050 and reduce greenhouse gas (GHG) emissions to a range of 350–420 megatons of carbon dioxide equivalent, South Africa, the largest emitter of GHG in Africa, introduced a carbon taxation system in June 2019. However, within just 3 years, it has become evident that the system faces significant challenges, with less than 6% of the estimated tax returns reaching the government. This issue raises concerns about potential corruption and manipulation within the system. To address these challenges, this study presents a comprehensive framework for a carbon trading and taxation system leveraging blockchain technology (BCT). Designing this framework from the government’s perspective ensures efficient monitoring and oversight. Notably, the proposed system operates automatically, eliminating the need for third-party intermediaries. This study also identifies a crucial research gap and lays the foundation for future studies. It empirically implements the system as a decentralised application) using the Hedera and Solana blockchain networks. Complemented by JavaScript for the user interface. Python, through Django, was used to handle the server-side system implementation. Thus, this research aims to address the shortcomings of Africa’s current carbon taxation system through a novel, government-centric approach powered by BCT. The proposed system’s potential to enhance transparency and efficiency justifies further exploration in future studies.

Coopetition strategies in a two-stage, multi-agent supply chain under hybrid carbon trading mechanisms

ABSTRACT Managing a multi-agent supply chain within a hybrid carbon trading framework, which integrates Certified Emission Reductions (CERs) and Carbon Quota Trading (CQT), presents a significant challenge. This complexity is further amplified by the interplay of competition and cooperation among agents. Motivated by this, we develop a biform game-based cooperative mechanism for a two-stage supply chain that includes a high-emission manufacturer, a negative-emission manufacture and a downstream retailer. This mechanism is designed to encapsulate both the non-cooperative and cooperative game elements. The former features a product competition game among the manufacturers and retailer, setting the stage for the cooperative game without directly yielding equilibrium solutions. The latter involves a cost-sharing agreement for the CER project's initial investment, informed by various coalitional zero-sum games. Our analytical findings, corroborated by numerical simulations, reveal that the biform game coordination mechanism significantly enhances the volume of CERs traded and consumer surplus, compared to a non-cooperative scenario. It effectively aligns the collaborative efforts of all agents within the supply chain. This research contributes substantially to the literature on coordinating multi-stage, multi-agent supply chains, and the strategic deployment of emission reduction initiatives in supply chains. It also offers valuable managerial insights for the design of government regulations in carbon markets.

Hybrid local energy markets: Incorporating utility function-based peer risk attributes, renewable energy integration, and grid constraints analysis

This study proposes a novel hybrid Local Energy Market (LEM) trading framework meticulously designed for efficient energy trading among distribution network participants. The proposed LEM hybrid modeling framework aims to maximize social welfare by considering the behavior of market participants and incorporating network constraints into the transactional framework. To address the consumption behavior of market participants, the concept of the utility function with peer risk attributes is employed, differentiating between flexible and inflexible demands. Additionally, it adeptly manages various generation types, including diesel generators, wind and solar generators, and storage, each characterized by a unique cost function. The investigation extends to the analysis of the Japan Electric Power Exchange market (JEPX), taking into account the residential electricity demand in Tokyo, Japan, by comparing with community-based (CB) and peer-to-peer (P2P) markets and scrutinizing market player behavior across multiple scenarios. These scenarios include comparisons of different market structures, variations in prices, considerations of grid constraints, and diverse weather scenarios. The proposed framework undergoes rigorous evaluation utilizing the IEEE 33-bus and 69-bus standard test systems, with results demonstrating its practicality, superiority of the proposed market compared to the CB and P2P markets, and providing valuable insights into the intricate interplay between market players’ behavior and the dynamics of diverse market structures, price fluctuations, grid constraints, and weather scenarios.

Peer-to-peer energy trading framework for an autonomous DC microgrid using game theoretic approach

Peer-to-peer (P2P) electricity trading has become the next generation of energy management strategies that economically benefits prosumers by trading electricity as goods and services. The P2P electricity market is expected to support the grid to minimize reserve requirements, lower investment and operational costs, reduce peak demand, and improve reliability. This study proposes a peer-to-peer (P2P) energy trading framework for an autonomous DC microgrid. The motivation is to overcome several issues related to P2P reported in the literature: the lack of physical microgrid modeling, absence of an energy management system (EMS) before the P2P trading simulation, and full autonomy of P2P participants. To address these shortcomings, a framework that integrates physical layer (modeling of the microgrid), information layer (EMS), and application layer (P2P trading scheme) is suggested. The P2P market clearance utilizes a non-cooperative game theory incorporating the alternating direction method of multipliers (ADMM) algorithm. To demonstrate the proposed framework, the P2P trading of four households (prosumers) that consists of rooftop PV, local energy storage (LES), and independent community energy storage (CES) is simulated. The objective is to prove the effectiveness of P2P trading in comparison with a framework without it. The MATLAB simulation results show that the system that utilizes P2P trading can reduce the daily overall cost of energy by 47.48 %, that is, from $28.85 (without P2P) to $15.15 (with P2P). This study demonstrated the benefits of P2P energy trading for prosumers and promoted the development of the energy market.

Designing Efficient Pair-Trading Strategies for the Technology Stock Market

Pairs trading is a quantitative trading approach that exploits instances of financial markets exhibiting disequilibrium. Through the identification of a pair of stocks with a his-torical pattern of correlated movement, and under the assumption that their price differentials will return to a central tendency, an investor can seek to gain from this mean-reversion by establishing a long position in the designated pair. Throughout the years, numerous trading frameworks and methodologies have been devised to enhance the efficacy of this strategy. This paper proposes an approach based on cointegration and correlation, but ultimately utilizes cointegration to identify the pair trading investment strategy that can be applied to technology sector stocks and metal futures in China over the last five years. The top five ranked portfo-lios are then evaluated. The results indicate that the pairs with Silver and Copper exhibited positive returns, while the pair with Palladium yielded negative returns.

Border Carbon Adjustments and Leakage in the Presence of Public Pollution Abatement Activities

This paper sheds light on the unidentified effects of unilateral environmental and trade actions within an international trade framework with two large open economies, transboundary pollution, and Public Pollution Abatement (PPA) activities. When private and public abatement coexists in the exporting country, stricter environmental policy by the importing one magnifies the carbon leakage effect. Pareto efficiency dictates that Border Carbon Adjustment (BCA) should account not only for the difference in carbon taxes between the two countries, but also for the policy’s unintended consequences on PPA. More importantly, we argue that a conditional reduction of BCA, subject to stricter environmental policy by the country that exports the polluting good, decreases global pollution and increases countries’ welfare. Such reform strategy generates strong incentives for countries with laxer environmental policy to adopt a stricter one.

Multi-objective robust dynamic pricing and operation strategy optimization for integrated energy system based on stackelberg game

The integrated energy system (IES) with hydrogen storage has become one of the most important developments in multi-energy coupling field, where the severe conflict of interests between different entities leads to great challenges to the economy and low-carbon operation. A multi-objective robust dynamic pricing and operation strategy optimization method based on the Stackelberg game is proposed for the hydrogen-containing energy storage (HES) IES. Firstly, the HES-IES trading framework is established based on the introduction of an integrated energy operator (IEO) and a load aggregator (LA). Secondly, a multi-objective robust Stackelberg game model is developed with the IEO as the leader and the LA as the follower, considering the minimization of operating costs and carbon emissions of the IEO and the minimization of integrated energy costs of the LA as the objectives. Finally, the compromise planning and the max-min fuzzy are addressed to solve the multi-objective model, which adopts the adaptive differential evolution (ADE) algorithm. In addition, the robust optimization (RO) with adjustable coefficients is employed to tackle uncertainties of source and load. The results show that this method can effectively balance the operating costs and carbon emissions of the system, improve the benefit of the IEO, reduce the costs of the LA, and avoid the uncertainty risk. Compared with traditional algorithms, the ADE algorithm has significant advantages in the number of iterations and solving time. In summary, the multi-objective robust dynamic pricing and operation strategy optimization proposed in this paper could effectively achieve the benefit balance between the IEO and the LA, also further improve the economy and robustness of the system and reduce carbon emissions.

Diversification of the concept of foreign economic activity of russian banks in the new economic conditions Yulia S. Polozhentseva1

Relevance. Russian banks actively participate in international trade and economic relations. However, taking into account geopolitical and economic changes, such as sanctions and changes in trade blocs, banks need to develop strategies for effective expansion of their activities at the international level. Business planning for the geographical development of foreign trade will help banks to adapt to new market conditions, determine optimal strategies and resources for the development of export-import operations, as well as minimize risks and increase competitiveness on the world stage..The purpose is to conduct a comprehensive study of the possibilities of geographical development of the foreign economic activity of Russian banks..Objectives: analyze regional markets for their potential; to determine the main advantages and disadvantages of the activity of foreign trade of Russian banks; will identify the peculiarities of the bank's exit to the new dawn within the framework of foreign trade, draw up a business plan and determine the criteria for the success of the project.Methodology. In the process of research, general scientific methods of logical and statistical analysis, field research, as well as qualitative and quantitative analysis were used.Results. 10 Russian banks, their foreign trade development strategy and future prospects were considered. The regions in which the opening of a bank branch will be the most successful for foreign trade have been identified: Tatarstan, Primorsky Krai, Kaliningrad Oblast, Yekaterinburg. A business plan for entering a new regional market for a bank with a focus on foreign trade has been drawn up, taking into account industry specifics.Conclusion. The foreign trade development strategy allows banks to expand their client base, increase their global presence and provide their clients with access to international financial services.

In Pursuit of Sustainable Development: Safeguarding the Right to Regulate

In a world where the balance between economic globalization and national sovereignty is constantly evolving, the right to regulate becomes a crucial aspect of ensuring sustainable and inclusive development. This article explores the complex dynamics of protecting this essential right within the framework of international trade and investment agreements. Drawing upon a comprehensive analysis of legal frameworks, case studies, and scholarly discourse, it sheds light on the challenges and opportunities associated with preserving the right to regulate. By examining the intricate interplay between trade liberalization and regulatory autonomy, it provides a nuanced understanding of how nations can effectively navigate the complex terrain of global governance while safeguarding their ability to enact and enforce domestic regulations. Furthermore, the article explores the implications of regulatory measures on environmental protection and sustainable development, investigating potential conflicts between international trade obligations and the sovereign right of nations to regulate in the best interest of their citizens. Through a multidisciplinary approach, encompassing legal analysis, policy evaluation, and socioeconomic considerations, it aims to contribute to the ongoing discourse on striking a delicate balance between economic integration and the preservation of national regulatory autonomy, ultimately providing policymakers, scholars, and stakeholders with valuable insights and recommendations to navigate the complex landscape of international trade and investment agreements.

Study on the Legal Adaptation of Digital Asset Trading and Securities Laws

This thesis discusses the connection between digital asset trading and securities law, and analyzes the role and importance of securities law in digital asset trading. As an emerging market, digital asset trading involves the issues of investor protection, information disclosure, and compliance of trading platforms. Securities law provides legal protection and regulatory framework for digital asset trading by regulating market behavior, protecting investors' rights and interests and maintaining market order. Investors should be aware of local securities laws and comply with compliance requirements to ensure the legality and safety of transactions. Regulators should actively follow up the market development and continuously improve the regulatory mechanism of digital asset trading to promote the healthy development of the market.

Absolute and size‐adjusted trade flows: An analysis of RTAs and GATT/WTO membership

AbstractThis paper contributes to the debate on whether membership of the General Agreement on Tariffs and Trade/World Trade Organisation (GATT/WTO) promotes greater levels of international trade. A size‐adjusted measure of trade flows vis‐á‐vis absolute trade flows (the traditional dependent variable) is used. The size‐adjusted trade flows dependent variable reduces the importance of bilateral trade with larger countries yielding a greater balance between large and small trade partners and provides an opportunity to test the importance of membership of the GATT/WTO relative to the numerous regional trade agreements (RTAs) which have grown exponentially over the years. In keeping with the recent literature, a structural gravity model of trade framework is used with a Poisson pseudo‐maximum‐likelihood estimator and high dimensional fixed effects. Furthermore, the data set consists of both international and intra‐national (domestic) trade flows. In the case of both approaches (size‐adjusted and absolute trade flows) the results are statistically significant and positive as regards the impact of GATT/WTO membership and RTAs on trade flows. Furthermore, the estimates resulting from size‐adjusted trade flows maintain the greater importance of GATT/WTO membership relative to RTAs.

Incentivizing sustainable practices: Game-theoretic approach to peer-to-peer energy trading in the green transition era

The urgent global concern regarding climate change has highlighted the necessity for transitioning to power generation with zero carbon emissions to promote a sustainable and environmentally conscious society. A crucial element in this transformation is reducing our dependence on the primary grid, which is predominantly powered by fossil fuels, natural gas, and coal. An innovative strategy for achieving this essential transition is through peer-to-peer energy trading (P2PET). However, the effectiveness of P2PET relies on successfully aligning the energy-related objectives of its participants. Identifying and effectively addressing these goals is a significant challenge. In response, this paper introduces a game-theoretic framework designed to encourage subscribers to engage in P2PET, both in islanded microgrids and interconnected grid configurations. Our methodology begins by introducing a model that captures the core energy-related objectives of both energy producers and consumers. This model is supported by a layered architectural framework tailored for peer-to-peer (P2P) marketplaces, enhancing the identification and classification of existing technologies in this domain. Following this, we delve into the formulation of an extended-form game rooted in non-cooperative game theory. We systematically evaluate the presence of strict Nash equilibria within this game-theoretic structure. To promote active engagement and trading in the peer-to-peer energy market (P2PEM), we introduce an innovative energy allocation policy. This policy is strategically devised to ensure the inclusion of every subscriber in the market, irrespective of fluctuations in supply and demand dynamics. Our proposed P2PET scheme is tested on a representative system, specifically a 14-bus IEEE network, incorporating 8 energy producers and 11 consumers as active participants in the market. By conducting an extensive series of tests, we accurately evaluate the design's performance. The results, compared to previous studies, show a significant reduction in consumer energy bills, ranging from 33 % to 7 %. This convincing result underscores the effectiveness and robustness of our proposed energy trading framework. In a world grappling with the imperative to transition to sustainable energy practices, our game-theoretic approach to incentivizing participants in P2PET emerges as a pivotal contribution. It demonstrates tangible benefits, promotes green energy production, and encourages responsible energy consumption.

A hierarchical game framework for peer-to-peer energy trading in distribution networks considering the participation of prosumers

The advent of the peer-to-peer energy trading has dramatically altered the conventional dynamics of distribution networks. Prosumers, managing independently and engaging in peer-to-peer (P2P) energy exchanges, introduce critical challenges for the economical and secure operations of these networks. This research presents a hierarchical framework designed to manage P2P energy interactions between prosumers and to facilitate flexible operation within the distribution network at the substation level. The upper layer of the model aims to stabilize market prices within the distribution framework, while the lower layer establishes a P2P energy trading platform that upholds fairness and safeguards the privacy of the prosumer participants. A fixed-point mapping approach is utilized to assess the interactions between market stabilization efforts and prosumer bidding strategies within this framework. Through simulations, we illustrate the logical soundness and effectiveness of our proposed model and approach. The findings indicate that the proposed model and the energy trading framework could substantially improve the overall welfare of all stakeholders involved.

Mega Ports’ Mitigation Response and Adaptation to Climate Change

Mega ports, defined in this study as those handling over 5 million TEUs annually, are major hubs within the dynamic framework of global trade, influencing both economic and environmental landscapes. This study identifies climate change as the foremost environmental concern for these ports, necessitating urgent and strategic responses. Through comprehensive research, this paper explores the main Climate Change Mitigation (CCM) strategies and evaluates their implementation across mega ports worldwide. Findings indicate widespread adoption of certain strategies, such as setting greenhouse gas (GHG) reduction targets and providing on-shore power supply (OPS), while also identifying challenges, particularly in implementing environmentally differentiated port fees. Additionally, this paper outlines key strategies for climate change adaptation (CCA) in ports. The results of this research offer insights into sustainable practices and collaborative efforts to confront climate change challenges effectively. These findings have the potential to significantly improve maritime policy and ship management strategies.

Effectiveness of alternative dispute resolution in resolving investment disputes in developing countries: Analysis of ICSID cases in Indonesia and Nigeria

This article analyzes the impact of Alternative Dispute Resolution (ADR) on improving the investment environment in Indonesia. Indonesia seeks to enhance legal certainty and create a favorable climate for investors, both local and foreign, by incorporating Alternative Dispute Resolution (ADR) into its legal system. This will provide an efficient and non-judicial method for settling investment issues. This approach is further solidified by the state's adoption of the ICSID Convention via Law No. 5 of 1968, which provides a dependable arbitration mechanism for the resolution of disputes involving foreign investors and the state. The convergence of ADR principles and ICSID regulations not only corresponds to global benchmarks but also reflects the cultural ethos of "musyawarah mufakat" in Indonesia, which advocates for peaceful resolutions. Attracting investment, sustaining economic growth, and participating in regional and global trade frameworks are all dependent on these legal mechanisms being successful. There are far-reaching consequences for Indonesia's long-term economic development, and this research emphasizes the critical significance of legal frameworks in preserving investor trust.