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CME Group Lowers Margins For Comex Gold, Silver, Platinum
By Kitco NewsThursday October 9, 2014 5:12 PM
(Kitco News) - CME Group is lowering margins for Comex gold, silver and platinum 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.
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, 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 $4,400 from $5,060. The “maintenance” margin for existing speculative trades, plus all hedge positions, was cut to $4,000 from $4,600.
For the 5,000-ounce silver contract, CME Group lowered the initial speculative margin to $6,050 from $7,150. The margin requirement for maintenance speculative positions, plus all hedge trades, was lowered to $5,500 from $6,500.
For the platinum contract, CME Group lowered the initial speculative margin to $1,980 from $2,310. The margin requirement for maintenance speculative positions, plus all hedge trades, was lowered to $1,800 from $1,980.
CME Group also lowered the margins for the smaller-sized gold and silver products.
The complete notice can be seen at this link.
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By Debbie Carlson of Kitco News; dcarlson@kitco.com
Follow me on Twitter @dcarlsonkitco
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