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CME Group To Cut Margins For Gold, Silver, Copper, Platinum

By Kitco News
Friday February 8, 2013 8:00 AM

(Kitco News) - Margins will decline next week for most of the metals traded on the New York Mercantile Exchange and its Comex division, including gold, silver, copper and platinum.

Exchange operator CME Group said the changes, announced late Thursday, will go into effect after the close of business on Tuesday. The lower margins were made as part of the “normal review of market volatility to ensure adequate collateral coverage.” Margins are the performance bond that futures traders must put up to be in a position and act as collateral, or protection from default.

The margin for new “initial” positions by speculators in the main 100-ounce Comex gold contract will decline to $5,940 from the current $6,600. The “maintenance” margin for existing spec positions, plus all hedge/member positions, will fall to $5,400 from $6,000.

For the main 5,000-ounce Comex silver contract, the initial position for speculators will be trimmed to $10,450 from $12,100. The maintenance margin for speculators, plus all hedge/member positions, will fall to $9,500 from $11,000.

Initial margins on the main Comex copper contract will fall to $3,410 from $3,850 for speculators. The maintenance margin for spec accounts, plus all hedge/member positions, will be cut to $3,100 from $3,500.

In Nymex platinum, the initial speculative margin will become $2,585, down from $2,970. The maintenance spec margin, plus for all hedge/member positions, will fall to $2,350 from $2,700.

CME Group is also cutting margins for smaller-sized contracts in the metals.

The full announcement, which also includes a number of other commodity markets, can be seen at this link: http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv13-070.pdf.

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By Allen Sykora of Kitco News; asykora@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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