(Kitco News) - Margins for palladium futures on the New York Mercantile Exchange will rise by 25% after the close of business Friday, CME Group announced late Thursday.

At the same time, the exchange also announced margin increases for a number of energy products, including crude oil, heating oil and RBOB gasoline futures, as well as some of the agricultural products, including wheat. CME Group said the changes are a part of “the normal review of market volatility to ensure adequate collateral coverage.”

For speculators, the “initial” margin for new trades in the main Nymex palladium contract will increase to $6,875 from $5,500. The “maintenance” margin for speculative positions, as well as all positions by hedgers, will rise to $6,250 from $5,000, CME Group said.

CME Group also increased the margin for the miNY palladium futures.

The complete CME notice announcing the margin changes can be seen in the following link:
http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-79.pdf

 

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

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