CME Raises Gold, Silver, Copper Margin Requirements

Exchange operator CME Group Inc. will raise the collateral requirements for trading in gold, copper and silver futures after a volatile week. Gold margins will be raised by 21%, silver margins by 16%, and copper margins by 18%, effective at the close of trading Monday, CME said in an email after trading closed Friday. Following the change, speculative investors in the benchmark 100-troy ounce gold contract must put up $11,475 to open a position and maintain $8,500 of that to keep it overnight. Producers and consumers of the precious metal must put up $8,500 to open a position, and the same figure to hold it overnight. In silver, speculative traders must put up $24,875 to trade a 5,000-ounce contract. The cost to hold a contract overnight was lifted to $18,500. Exchanges require market participants to post margins to cover potential losses in trading sessions. CME executives have said margin increases typically take place when markets become more volatile.

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