The CME Group (CME), the world's largest futures exchange by
volume, announced Monday that it has raised futures margins, or
funds held back by traders to guarantee their transactions, for a
range of oil contracts, following a review of market
volatility.
"As per the normal review of market volatility to ensure
adequate collateral coverage, the Chicago Mercantile Exchange Inc.,
Clearing House Risk Management staff approved (revised) the
performance bond requirements" for several oil contracts, it said
in a statement on its website.
The new rates will be effective from the close of business on
Tuesday, May 10, it said.
Products included in the change include New York Mercantile
Exchange West Texas Intermediate and Brent crudes and gasoline and
fuel oil contracts.
A sharp run up in oil prices in recent weeks, followed by a
sharp fall last week has been blamed by many market watchers on
speculative activity not directly related to market
fundamentals.
In recent weeks, Nymex crude reached a high of $114.83 per
barrel. At 0321 GMT Tuesday it was trading at $100.80 a barrel,
down $1.75.
For a full list of the latest CME performance bond changes,
see:
http://www.cmegroup.com/toolsinformation/lookups/advisories/clearing/files/Chadv11-162.pdf
-By Simon Hall, Dow Jones Newswires, +86 10 8400-7755;
simon.hall@dowjones.com