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CME Group Lowering Margins For Platinum, Palladium

By Kitco News
Friday February 28, 2014 7:52 AM

(Kitco News) - Margins are declining for platinum and palladium futures traded on the New York Mercantile Exchange, said exchange operator CME Group late Thursday.

The lowered margins, which act as collateral on a futures trade, will go into effect after the close of business on Friday, CME Group said in a notice. The changes are part of the “normal review of market volatility to ensure adequate collateral coverage,” CME Group said.

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For palladium, the “initial” margin for opening a new speculative trade will decline to $4,125 an ounce from $4,400. For “maintenance” of existing speculative positions, as well as all hedge and member positions, the margin will fall to $3,750 from $4,000.

In the case of platinum, the initial margin for speculators will decline to $3,025 from $3,465. For maintenance of spec existing positions, as well as all hedge and member positions, the margin will fall to $2,750 from $3,150.

CME Group is also changing margins for a number of other commodities, including a rise for live cattle but decline for crude oil. The full notice can be seen here.

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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