FCMs brace for ‘tough winter’ of energy market disruption

Banks stress-test clients, add big margin multipliers to insulate against risk of 100% price moves

Broken gas supply

The risk of highly volatile energy prices this winter has sent a shiver down the spines of futures and options clearers, who are responding by upping client margin and running hypothetical stress scenarios. Companies and governments in Europe are scrambling to prepare in case Russia stops or reduces gas supplies at a time of peak annual demand.

“It’s going to be another tough winter, so we’re gearing up for that,” says a risk executive at a large US FCM. “We have created ad hoc scenarios that

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here