Oil price shock triggers big margin calls

Banks and exchanges worked through weekend in anticipation of oil collapse

oil-spill

Clearing houses and banks spent the weekend preparing for an oil price collapse – and the margin calls that would come with it – after talks between Russia and Saudi Arabia broke down on Friday, March 6.

When trading opened on March 9, oil prices plummeted almost 30%, sparking fresh falls in global stock markets and US Treasury yields – a combination of moves that resulted in large demands for margin from central counterparties.

“Today was very busy. There have been significant margin calls

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