If compute-market financialization expands too far before physical settlement is established, the market will be easy to manipulate and will have substantial basis risk.

“build too much financialization before you've the industry has had time to build out the the physical settlement then I think what you have is you have”

“a market that's very easy to manipulate and a market that has a lot of basis risk where the price you may be hedging against actually has nothing to do with the price that the market you”

“can actually buy the capacity for.”