(Kitco News) -CME Group is hiking margin requirements for gold, silver, platinum and palladium futures effective after the close of business on Tuesday.

A margin hike in silver futures last week prompted speculation among traders that margin hikes would be coming in other metals as well. The margin hikes affect participants in all positions, long or short.

A notice said the changes are a part of a “normal review of market volatility to ensure adequate collateral coverage.” CME Group owns the New York Mercantile Exchange and its Comex division, where metals-futures trading occurs.

For the Comex 5,000-ounce silver contract, the “initial” margin for new speculative positions will rise from $8,775 to $9,788, while the “maintenance” margin for existing speculative positions will increase from $6,500 to $7,250. All hedge/member positions will also rise from $6,500 to $7,250.

For the Comex 100-ounce gold contract, the initial margin for speculators will rise from $5,739 to $6,075 and the maintenance margin increases from $4,251 to $4,500. The margin for all hedge/member positions also rise from $4,251 to $4,500.

For the main Nymex palladium and platinum contracts, the initial margin for speculators increases from $4,125 to $4,950. For maintenance of speculative positions as well as all hedge/member positions, the margin rises from $3,750 to $4,500.

Margins are also rising for the 10-ounce gold futures, Comex miNY gold futures, Comex miNy silver futures, E-mini gold futures, E-mini silver futures, Nymex miNY platinum futures, Nymex miNY palladium futures and uranium futures.


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

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