The G20’s financial watchdog, the Financial Stability Board, has warned the concentration firms, banks, exchanges and clearing houses of the global commodity market poses a risk to the stability of the economy.
“The commodities ecosystem is heterogeneous, opaque, and has several key financial vulnerabilities”
— Financial Stability Board, The Financial Stability Aspects of Commodities Markets
The vulnerabilities and channels of contagion discussed in the report include leverage, impact of large margin calls on liquidity demand and market opacity.