CME Group Raises Gold, Silver Margin Requirements Following Historic Price Plunge

Deep News01-31 17:21

CME Group Inc has increased margin requirements for gold and silver futures on the Comex, following the largest price declines for these contracts in decades.

The exchange stated in a Friday announcement that for non-high-risk accounts, the margin requirement for gold will be raised from the current 6% to 8%. The exchange indicated that for high-risk accounts, the margin requirement will increase from the current 6.6% to 8.8%.

According to the statement, for non-high-risk accounts, the margin requirement for silver will be raised from the current 11% to 15%, while for high-risk accounts, the silver margin will increase from the current 12.1% to 16.5%. Margin requirements for platinum and palladium futures contracts will also be raised.

CME Group stated that these adjustments, effective after the close of trading on Monday, are the result of a "routine assessment of market volatility to ensure adequate collateral coverage."

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment