Monday, April 7, 2014

CME Group Reducing Margins For Gold, Silver, Platinum

CME Group is lowering margins for gold, silver and platinum futures as of the close of business on Friday.
The exchange operator, in a notice issued late Thursday, said the changes are “per the normal review of market volatility to ensure adequate collateral coverage.” Margins act as collateral for a trade in a futures contract.
CME Group Reducing Margins For Gold, Silver, PlatinumThe “initial” margin to establish new speculative positions in the main Comex 100-ounce gold futures contract will decline to $7,150 from $7,975. The “maintenance” margin for existing speculative positions, as well as all hedge positions, will decline to $6,500 from $7,250.
For the main Comex 5,000-ounce silver contract, the initial margin for speculators will drop to $9,900 from $11,000. The maintenance margin for speculative accounts, as well as all hedge positions, will be reduced to $9,000 from $10,000.
Meanwhile, the initial margin for speculators in the Nymex platinum contracts will drop to $2,750 from $3,025. The maintenance margin for speculative accounts, as well as all hedge positions, will decline to $2,500 from $2,750.
CME Group is also lowering the margins for the smaller-sized gold and silver contracts. In addition, changes in margins were announced for a number of other markets, including coal, crude oil, ethanol, iron ore, hot rolled steel and freight.
The full CME Group notice can be viewed at this link.

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