Margins and liquidity in European energy markets in 2022

BIS Bulletin  |  No 77  | 
13 September 2023

Key takeaways

  • European futures markets for natural gas and electricity were deeply disrupted by the events following the Russian invasion of Ukraine, including through large fluctuations in margins.
  • The fluctuations in margins put significant liquidity demands on market participants, prompting the official sector to establish liquidity facilities in some jurisdictions.
  • Fluctuations in initial margins were associated with material reductions in open interest of market participants, in line with standard deleveraging mechanisms seen in financial markets.