Chicago Mercantile Exchange slashes precious metal margins
The Chicago Mercantile Exchange (CME), the biggest provider of US futures, says it will cut margins on precious metals and copper futures from February 12.
The initial margins on the benchmark COMEX 100-ounce gold futures contract will be cut by 10% to $5,940 $6,600.
Margins on the COMEX 5,000-ounce silver contract will reduce by roughly 14%; those on the NYMEX 50-ounce platinum futures contract 13%; and margins on COMEX 25,000-lb copper futures by around 11%.
CME will also cut maintenance margins by 10% to $5, 400.
It is a normal practice for exchanges to adjust margins in reaction to market volatility – end of last year the exchange also cut gold margins by 11%.