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CME Group Lowers Margins For Gold, Silver, PGMs, Copper
By Kitco NewsFriday August 22, 2014 7:35 AM
(Kitco News) - CME Group is lowering margins for Comex gold, silver and platinum group metals futures, and the new rates will be effective as of the close of business on Friday, according to a notice from CME Group late Thursday.
They also lowered copper margins, but those will be effective as of the close of business Monday.
The exchange operator said the changes were the result of “the normal review of market volatility to ensure adequate collateral coverage.”
Margins act as collateral on futures trades. CME Group also changed margins for electricity, crude oil, natural gas futures and a number of other products.
In the case of the main 100-ounce gold-futures contract, CME Group trimmed the “initial” margin for new speculative trades to $5,060 from $5,940. The “maintenance” margin for existing speculative trades, plus all hedge positions, was cut to $4,600 from $5,400.
For the 5,000-ounce silver contract, CME Group lowered the initial speculative margin to $7,150 from $8,250. The margin requirement for maintenance speculative positions, plus all hedge trades, was lowered to $6,500 from $7,500.
For the palladium contract, CME Group lowered the initial speculative margin to $3,575 from $4,125. The margin requirement for maintenance speculative positions, plus all hedge trades, was lowered to $3,250 from $3,750.
For the platinum contract, CME Group lowered the initial speculative margin to $2,310 from $2,750. The margin requirement for maintenance speculative positions, plus all hedge trades, was lowered to $2,100 from $2,500.
For the copper contract, CME Group lowered the initial speculative margin to $2,860 from $2,970. The margin requirement for maintenance speculative positions, plus all hedge trades, was lowered to $2,600 from $2,700.
CME Group also lowered the margins for the smaller-sized gold, silver and copper products, as well as aluminum and iron ore.
The complete notice can be seen at this link.Related Stories:
- Weaker Prices Prompt Fund Managers To Cut Precious Metals Positions In Latest CFTC Reports
- Survey Participants Split On Gold Price Trend For Next Week
- Geopolitics, Federal Reserve On Tap For Gold Next Week
By Debbie Carlson of Kitco News; dcarlson@kitco.com
Follow me on Twitter @dcarlsonkitco
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