CME Group Inc. said it will raise the collateral requirements for trading in benchmark gold, silver and other precious metals futures contracts, effective at the close of business Tuesday.
The exchange operator said it also will increase margins to trade its benchmark natural-gas futures, also effective Tuesday.
Margins to trade benchmark Comex 100-troy ounce gold futures will be increased by 19%, CME said in a notice emailed late Monday. The margin to trade silver will increase 18%, palladium will increase 14% and platinum will increase 19%. Natural-gas futures will increase 5.6%
Futures exchanges like CME keep tabs on market volatility as they determine how much collateral, or margin, traders must deposit to back up trades. When markets like gold begin to rapidly swing, exchanges may decide that customers need a bigger cushion to cover changes to their positions.
Source by Commodity Insights
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