CME Group Inc. (CME) late Wednesday raised margin requirements
for investors that buy or sell oil futures for delivery in
different months, or the spread between contracts.
CME, which operates the New York Mercantile Exchange, also
raised spread margin requirements for gasoline futures, it said in
an alert. The rates will be effective after the close of business
Thursday.
"If you go long June and short July [oil], you have to put up
more money," said Phil Flynn, an energy trader at PFG Best. He said
exchanges typically raise margins for spreads after they raise
outright margins, or the collateral required for an investor to
trade in the futures market, or during times of volatility.
The CME raised gasoline futures margins last week. On Wednesday,
June oil futures jumped 3.3% to $100.10 a barrel.
-By Laura Mandaro; 415-439-6400; AskNewswires@dowjones.com