Clearing industry braces for volatility ‘super-cycle’

Green transition may fuel higher cash demands and more risk events, FCMs warn

Market participants should brace for elevated volatility across commodities, and higher margin requirements, as the transition to a greener economy exacerbates whipsawing price moves, according to two senior derivatives executives.

“We know we’re heading into a kind of super-cycle of potential volatility,” said Alicia Crighton, managing director and co-head of global futures at Goldman Sachs.

“I think we’re underestimating the impact of that as an industry,” she added.

Gary Saunders, head of