Energy and commodities market participants, clearing members and clearing houses are encountering major challenges in managing the impact of the current geopolitical situation. The Russian aggression in Ukraine has not only led to record energy and commodities prices, but also to extreme volatility in those prices. In turn, margin requirements for energy and commodities market participants have also increased to record levels.

1. What specific potential vulnerabilities has the Commission identified in the current geopolitical situation regarding energy and commodities markets, margining and leverage, and how is it assessing risks to financial stability, in particular the possibility that some energy and commodities market participants will no longer be able to meet potential additional margin calls issued by their clearing bank?

2. Does it consider the existing framework for the recovery and resolution of central counterparties sufficient to address systemic risks that could arise from their potential failure? If not, what further initiatives, if any, does it intend to undertake in this regard?

3. Does it believe that the resilience of energy and commodities markets could be improved if participants in these markets that provide activities similar to those of investment firms were also subject to similar prudential regulation?