Friday, August 22, 2014

CME Group Lowers Margins For Gold, Silver, PGMs, Copper

Exchanges don't do this during bull markets. The most active December futures are trading at $1281.6 up $6.20. September silver $19.475 up 6 cents.
From Kitco:
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....MORE