But on Saturday, traders in the relatively small and obscure world that is the physical gas market were singularly focused on one very big problem: exchanges were demanding more collateral because of the volatility.
Some traders looking to raise more collateral urgently tapped credit lines, while lenders sprang into action. One bank was able to extend credit facilities by $500 million and have them in place when the markets reopened.
Some financial losses in the U.S. market may only emerge toward the end of March when billing comes due for February. Serious financial damage may end up raising the barriers for entry to the market, which in turn could reduce the amount of competition, said Kilduff at Again Capital.
This Margin Call effect could be the same for Hedge Funds if the MOVE Index continues to skyrocket or for the Retail Army if the Equity markets fall down.
