Energy Position Limits May Cause More Price Volatility, IEA Says

The implementation of stricter regulations on global swaps markets, such as position limits and higher margin requirements, may cause energy prices to become more volatile, the International Energy Agency said.

“The new rules are intended to bring transparency to the swaps markets and lower their risks,” the Paris-based energy adviser said in its monthly oil market report today. “Regulatory uncertainties and inconsistencies within and across jurisdictions might in fact lead to less transparent and more risky global financial markets.”