CME Group Inc. (CME) on Wednesday said that it is boosting
performance bond requirements used to back certain spread trades
involving crude oil, refined products and metal futures.
Performance bond requirements, or margins, will increase at the
close of trading Thursday for spread trades involving light, sweet
crude oil; New York Harbor gasoline; propane; and Comex copper,
gold, silver, platinum and palladium, according to a notice issued
by CME Group.
The changes, which CME said resulted from a review of market
volatility, affect initial margins and maintenance margins. Initial
margins are the amounts required to initiate a futures position;
maintenance margins are set amounts for each futures contract that
customers are required to maintain in their margin accounts.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com