CME Group Hiking Silver-Futures Margins By Another 11.6%

02 May 2011, 04:35 p.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -CME Group is hiking silver margins by another 11.6% after already hiking them twice last week, the exchange announced Monday afternoon.

The “initial” margin to open new speculative positions in the main 5,000-ounce silver-futures contract will rise to $16,200 from $14,513, according to a notice released by the exchange. The “maintenance” margin for exiting speculative positions, as well as both initial and maintenance margins for hedger positions, will rise to $12,000 from $10,750.

The changes will be effective after the close of business on Tuesday. Margins are also rising for Comex MiNY silver futures and E-mini silver futures.

The notice from CME Group, which operates the Comex division of the New York Mercantile Exchange, said the change is a part of the “normal review of market volatility to ensure adequate collateral coverage.”