Abstarct: By the increase of penetration of stochastic production (e.g., wind production), keeping power system security is a challenging problem. In this condition, the market operator maintains system security by scheduling and deploying capacity reserve. Due to significant correlation among diverse wind farms, analyzing the impact of this correlation on the outcomes of energy and reserve markets is an important issue. To accomplish this task, in this thesis, correlated scenarios of wind production are generated using real-world data of wind speed and production. These scenarios are considered as inputs for clearing joint energy and reserve markets. The energy and reserve market clearing problem is formulated as a two-stage stochastic model, which energy and reserve are clear simultaneously. In this model, technical and economic limitations, inter-temporal constraints of generating units, and network constraints are taken into account. Simulation results are provided through 6-bus and IEEE 118-bus systems with and without considering the correlation of wind farms. The impact of correlation on the energy and reserve dispatches, cost of day-ahead market, expected real-time operation cost and total cost of system is analyzed through a comparative analysis. The results show that the required reserve increases with considering the correlation.