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CME Group Hiking Margin Requirements For Gold, Platinum Futures

By Kitco News
Friday June 21, 2013 7:12 AM

(Kitco News) - Margin requirements for gold and platinum futures will rise after the close of business on Friday, CME Group has announced.

Margins, which act as collateral on futures contracts, were also increased for some interest-rate products but were lowered for electricity-related products. CME Group said the changes are the result of “the normal review of market volatility to ensure adequate collateral coverage.”

The “initial” margin to open speculative positions in the 100-ounce gold contract on the Comex division of the New York Mercantile Exchange will rise to $8,800 from $7,040. The “maintenance” margin for existing speculative positions, as well as all hedge positions, will rise to $8,000 from $6,400, CME Group said.

Margins will also increase for other gold products, including the 10-ounce contract and miNY gold futures.

Meanwhile, the initial speculative margin for Nymex platinum futures will increase to $3,465 from $3,080. The maintenance margin for speculators, plus all hedge positions, will rise to $3,150 from $2,800.

The full announcement from CME Group can be seen at the following link: http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv13-287.pdf.


By Allen Sykora; 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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