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CME Group Hikes Margin Requirements For Copper, Platinum Futures

By Kitco · October 4, 2011 · 4:18 am · Leave a Comment


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By Allen Sykora

Margin requirements will increase by 15% for copper futures and 29% for platinum futures, exchange operator CME Group announced in an advisory late Monday.

The initial margin for new speculative positions in the main copper contract on the Comex division of the New York Mercantile Exchange will increase to $7,763 from $6,750. The maintenance margin for existing speculative copper positions, as well as all hedge/member positions, will rise to $5,750 from $5,000.

Also, the initial margin for new speculative positions in the main Nymex platinum contract will rise to $4,950 from $3,850. The speculative maintenance margin for existing platinum positions, as well as all hedge/member positions, will rise to $4,500 from $3,500.

The new rates will be effective after the close of business on Tuesday.

Increases were also announced for the E-mini copper futures and miNY platinum futures. The metals announcements were included in an advisory that also listed changes in margins for equity, foreign-exchange and interest-rate products, as well as agricultural spreads.

The margin changes were approved by CME Clearing House Risk Management staff as part of “the normal review of market volatility to ensure adequate collateral coverage.”