CME Lowers Gold and Silver Futures Margin Requirements 13 to 15 Percent in One Step

A notice sent out by the CME Group Thursday, August 21, 2014, announced new, lower maintenance and margin rates for gold and silver futures effective at the close of business Friday, August 22.

For Spec traders in the 100-ounce gold contract (GC) the initial performance bond requirement will decline by $880 or 14.8% from $5,940 to $5,060 per contract.  Spec maintenance (margin) requirements will fall $800 or 14.8% from $5,400 to $4,600 per contract.

For Hedge Members both the initial bond requirement and maintenance rates will fall $800 or 14.8% from $5,400  to $4,600 per GC gold contract.  (Silver margin changes on Page 2.)

Silver

For Spec traders in the 5,000-ounce silver contract (SI) the initial performance bond requirement will fall $1,100 or 13.3% from $8,250 $7,150 per contract. Spec maintenance (margin) requirements will decline $1,000 (also 13.3%) from $7,500 to $6,500 per contract.

For Hedge Members in the large size COMEX silver contract, both the initial bond and margin rates will drop $1,000 or 13.3% from $7,500 to $6,500 per contract.

Other margin changes in various metals contracts were reported in this notice, including aluminum, smaller sized gold and silver contracts, iron ore, palladium, platinum, and metallic scrap.  The notice, linked below, reflects the recent lower volatility for metals trade. 

Source: CME Group

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv14-325.pdf