Energy firms call for central bank support to cover margin spikes
Trade body warns energy market participants risk being unable to meet “unprecedented margin requirements”
European energy majors and commodity traders have been privately approaching central banks for liquidity support to meet large margin calls on energy derivatives trades, Risk.net has learned, amid whipsawing prices for wholesale commodities and electricity on the back of Russia’s invasion of Ukraine.
Energy majors have found themselves on the hook for enormous margin calls from central counterparties (CCPs) in the wake of the war in Europe, with the price of benchmark gas contracts more than
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