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FACTBOX-Silver margin changes by CME since 2009
May 10, 2011 / 4:33 PM / 6 years ago

FACTBOX-Silver margin changes by CME since 2009

 May 10 (Reuters) - CME Group Inc (CME.O) raised margin requirements for the 5,000-ounce silver futures <0#SI:> five times over a two-week period by a total of about 84 percent.
 The margin hikes, cited as one of the triggers for the broad-based rout in the commodities complex last week, sparked a slide in silver prices since touching a record high of $49.51 an ounce on April 28.
 Following are some details of the increase:
 * CME, the world's largest commodities exchange, hiked margins to $14,000 per contract from $12,000 effective May 5, and again to $16,000 effective May 9. Prior to April 25, the margin stood at $8,700 per contract. [ID:nN04107715]
 * Margins are deposits paid by investors in futures markets, where full payment is made when contracts mature, to an exchange or clearing house to cover the risk of default by that investor and typically are based on the largest most-likely daily market move.
 * Exchanges typically raise margins to mitigate risks as price volatility in the market increases.
 * However, margins can also be used as a tool to curb speculative trading activity, particularly "hot money," by reducing the number of positions a party can hold by leveraging a particular amount of money.
 For a list of historical silver margin changes by CME click:
 r.reuters.com/wav49r
 Following are the percentage changes in the COMEX 5000 silver futures (Tier 1) maintenance margins since 2009 (in U.S. dollars per contract). EFFECTIVE DATE       INITIAL       MAINTENANCE    PERCENTAGE CHANGE 09 May 2011          $21,600         $16,000             14.3 05 May 2011          $18,900         $14,000             16.7 03 May 2011          $16,200         $12,000             11.6 29 April 2011        $14,513         $10,750             13.2 26 April 2011        $12,825          $9,500              9.2 25 March 2011        $11,745          $8,700              5.5 21 Jan. 2011         $11,138          $8,250              6.5 17 Dec. 2010         $10,463          $7,750              6.9 16 Nov. 2010          $9,788          $7,250             11.5 11 Nov. 2010          $8,775          $6,500             30.0 01 Oct. 2010          $6,750          $5,000              0.0 07 June 2010          $6,750          $5,000             17.7 30 April 2010         $5,738          $4,250            -15.0 02 March 2010         $6,750          $5,000              0.0 12 Feb. 2010          $6,750          $5,000             11.1 15 Dec. 2009          $6,075          $4,500             12.5 21 Aug. 2009          $5,400          $4,000            -33.3 26 June 2009          $8,100          $6,000            -14.3 28 May 2009           $9,450          $7,000             16.7 22 Jan. 2009          $8,100          $6,000             -6.3 08 Jan. 2009          $8,640          $6,400               --  (Reporting by Naveen Arul in Bangalore; Editing by Lisa Shumaker)       

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