UPDATE: CME Lowers Margin Requirements For Crude-Oil, Metals Futures
February 09 2012 - 6:12PM
Dow Jones News
CME Group Inc. (CME) will cut the collateral that traders must
put up to trade its benchmark crude-oil, gold and other futures,
the company said in an email after trading closed Thursday.
The exchange operator will cut the costs to trade its light,
sweet crude-oil contract on the New York Mercantile Exchange.
Trading costs are also set to decline for benchmark gold, silver
and copper futures.
The new rates will be effective after the close of business
Monday, the statement said.
Exchanges require market participants to post margin to cover
potential losses in future trading sessions, and to avoid a default
by a trader. CME executives have said margin decreases typically
take place when markets become less volatile.
In Nymex crude futures, the world's most widely traded oil
futures contract, speculators will have to post $6,885 to trade the
front-month contract, down 9% from $7,560 currently.
For speculators in the exchange's benchmark gold futures
contract, costs to open a position will fall to $10,125, down 12%
from the $11,475 currently.
Costs to trade Comex copper futures will fall 13%, and costs to
trade silver futures will decline 14%.
The exchange will also reduce costs to trade platinum, iron-ore,
steel, and other metals and energy contracts. Margin requirements
will increase on the exchange's main natural-gas futures
contract.
-By Matt Day, Dow Jones Newswires; 212-416-4986;
matt.day@dowjones.com
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