The opening of the U.S. market could increase volatility further, one emissions trader added.

Volume is expected to be low in the holiday-shortened week, which could increase volatility.

Market participants say wide spreads between bids and offers also complicate trading, and increase volatility.

Trading volume is expected to be light this week due to the Christmas holiday, which could increase volatility.

Volume usually drops before the long weekend to mark the Independence Day holiday and that could increase volatility.

That in turn will lead to home price declines and mortgage losses, which would increase volatility in RMBS prices.

The survey found the tax was expected to increase volatility in local mining stocks over the next 12 months.

High temperatures can increase volatility.

A dip below 85 yen could increase volatility and push Japanese officials to talk try to talk down the yen.

That combined with the sheer speed at which thousands of transactions can move in one direction is set to increase volatility.

High-frequency trading uses high-speed computers to drive a range of trading strategies, some of which critics say are unfair and increase volatility.

May equity options and some options on stock indexes will stop trading at Friday's close and settle on Saturday, which may increase volatility.

Bruce Latimer, a trader at Dundee Securities, also pointed to a gold option expiry on Tuesday that will increase volatility in the sub-sector.

It would increase volatility by forcing traders to make fewer but bigger trades, which would create bigger lurches up and down on financial markets.

Investment banks and trading exchanges have voiced concerns tighter regulation of position limits could increase volatility in oil markets by reducing the number of participants.

Banks also warned that rushing in new rules could further hamper liquidity and increase volatility, making it harder for markets to absorb sharp price moves.