Market situation: Requests for intervention

The current market situation has caused increased margin calls to be issued to many market participants. This article on the Financial Times web site reports that EFET have requested that the energy industry receive time limited support from the European Investment Bank or central banks, to provide support through lenders, to soften the impact of margin calls. However this further article on the Financial Times site reports that the support is unlikely to be forthcoming, with reports that participation in the markets had reduced due to the increased cost of trading.

The increased pricing levels are also likely to have an impact on market participants’ utilisation of thresholds such as the EMIR clearing threshold.

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