CME Lowers Silver Margin Requirements Effective August 6

On Thursday, August 2, the Chicago Mercantile Exchange or CME announced changes in the silver “margin rates.”

The notice to traders said in typical fashion… “As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed below.”

For non-hedgers and speculators the amount required for initial bond requirements dropped 10.7% from the current $18,900 to $16,875 for each 5,000 ounce silver contract (SI).  The maintenance (margin) requirement for Spec traders falls from $14,000 to $12,500.  

For traders considered by the CFTC and the exchange as hedge members, the initial bond and maintenance requirements fell from $14,000 to $12,500, also a reduction of 10.7%.

The new rates will be effective as of the close of business on Monday, August 6.  

There were similar reductions for the Silver Miny(QI) and E-Mini (6Q) Silver contracts, as well as slightly larger reductions percentage wise for Palladium and Platinum contracts.

For the full notice to traders follow the link just below. 

Source: CME
http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-328.pdf