CME Increases Gold Margin Requirements By 27%

SAN FRANCISC0 (MarketWatch) -- The CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., on Wednesday announced an increase in margin requirements to trade gold. The money needed to trade gold contracts increased 27%. Initial margin requirements rose to $9,450 from $7,425 per 100-ounce contract; maintenance margin requirements rose to $7,000 from $5,500, both effective as of the close of trading on Thursday. The CME had increased margins for gold two weeks ago by 22%.
CME letter follows.

 

 11-300

TO:

 

FROM:

 

Clearing Member Firms

 

Chief Financial Officers

 

Back Office Managers

 

Margin Managers

 

SUBJECT:

 

DATE:

 

Wednesday, August 24, 2011

 

To receive advanced notification of Performance Bond (margin) changes, through our free automated mailing list, go to 

The rates will be effective after the close of business on

and subscribe to the Performance Bond Rates Advisory Notice listserver.

 

Current rates as of:

 

Wednesday, August 24, 2011.

 

Thursday, August 25, 2011.

 

As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago MercantileExchange Inc., Clearing House Risk Management staff approved the performance bond requirements for thefollowing products listed below.

 

http://www.cmegroup.com/newsletter/web2lead/web2sf-old.html 

 

CME Clearing

 

Performance Bond Requirements

 

 

SPAN MINIMUM PERFORMANCE BOND REQUIREMENTS

 

Outright Rates

 

NewMaintenance

 

CurrentMaintenance

 

CurrentInitial

 

New Initial

 

ISO

 

Change

 

Rate Type

 

Description

 

CC

 

METALS - Outright Rates

 

E-MINI GOLD FUTURES (8Q)

Spec

 

Increase

 

USD

 

2,450

 

1,815

 

3,119

 

2,310

 

Tier 18Q

 

Hedge/Member

 

Increase

 

USD

 

1,815

 

1,815

 

2,310

 

2,310

 

Tier 18Q

 

Spec

 

Increase

 

USD

 

2,450

 

1,815

 

3,119

 

2,310

 

Tier 28Q

 

Hedge/Member

 

Increase

 

USD

 

1,815

 

1,815

 

2,310

 

2,310

 

Tier 28Q

 

Spec

 

Increase

 

USD

 

2,450

 

1,815

 

3,119

 

2,310

 

Tier 38Q

 

Hedge/Member

 

Increase

 

USD

 

1,815

 

1,815

 

2,310

 

2,310

 

Tier 38Q

 

Spec

 

Increase

 

USD

 

2,450

 

1,815

 

3,119

 

2,310

 

Tier 48Q

 

Hedge/Member

 

Increase

 

USD

 

1,815

 

1,815

 

2,310

 

2,310

 

Tier 48Q

 

10 TROY OZ GOLD FUTURES (MGC)

 

Spec

 

Increase

 

USD

 

743

 

550

 

945

 

700

 

Tier 1MGC

 

Hedge/Member

 

Increase

 

USD

 

550

 

550

 

700

 

700

 

Tier 1MGC

 

Spec

 

Increase

 

USD

 

743

 

550

 

945

 

700

 

Tier 2MGC

 

Hedge/Member

 

Increase

 

USD

 

550

 

550

 

700

 

700

 

Tier 2MGC

 

Spec

 

Increase

 

USD

 

743

 

550

 

945

 

700

 

Tier 3MGC

 

Hedge/Member

 

Increase

 

USD

 

550

 

550

 

700

 

700

 

Tier 3MGC

 

Spec

 

Increase

 

USD

 

743

 

550

 

945

 

700

 

Tier 4MGC

 

Hedge/Member

 

Increase

 

USD

 

550

 

550

 

700

 

700

 

Tier 4MGC

 

COMEX 100 GOLD FUTURES (GC)

 

Spec

 

Increase

 

USD

 

7,425

 

5,500

 

9,450

 

7,000

 

Tier 1GC

 

Hedge/Member

 

Increase

 

USD

 

5,500

 

5,500

 

7,000

 

7,000

 

Tier 1GC

 

Spec

 

Increase

 

USD

 

7,425

 

5,500

 

9,450

 

7,000

 

Tier 2GC

 

Hedge/Member

 

Increase

 

USD

 

5,500

 

5,500

 

7,000

 

7,000

 

Tier 2GC

 

Spec

 

Increase

 

USD

 

7,425

 

5,500

 

9,450

 

7,000

 

Tier 3GC

 

Hedge/Member

 

Increase

 

USD

 

5,500

 

5,500

 

7,000

 

7,000

 

Tier 3GC

 

Spec

 

Increase

 

USD

 

7,425

 

5,500

 

9,450

 

7,000

 

Tier 4GC

 

Hedge/Member

 

Increase

 

USD

 

5,500

 

5,500

 

7,000

 

7,000

 

Tier 4GC

 

Page 2 of 3

 

8/24/2011

 

20 South Wacker Drive Chicago, IL 60606 Ph.: (312) 648-3888 Fax: (312) 930-3187 cmegroup.com

 

 

 

SPAN MINIMUM PERFORMANCE BOND REQUIREMENTS

 

Outright Rates

 

NewMaintenance

 

CurrentMaintenance

 

CurrentInitial

 

New Initial

 

ISO

 

Change

 

Rate Type

 

Description

 

CC

 

COMEX MINY GOLD FUTURES (QO)

 

Spec

 

Increase

 

USD

 

3,713

 

2,750

 

4,725

 

3,500

 

Tier 1QO

 

Hedge/Member

 

Increase

 

USD

 

2,750

 

2,750

 

3,500

 

3,500

 

Tier 1QO

 

Spec

 

Increase

 

USD

 

3,713

 

2,750

 

4,725

 

3,500

 

Tier 2QO

 

Hedge/Member

 

Increase

 

USD

 

2,750

 

2,750

 

3,500

 

3,500

 

Tier 2QO

 

Spec

 

Increase

 

USD

 

3,713

 

2,750

 

4,725

 

3,500

 

Tier 3QO

 

Hedge/Member

 

Increase

 

USD

 

2,750

 

2,750

 

3,500

 

3,500

 

Tier 3QO

 

Spec

 

Increase

 

USD

 

3,713

 

2,750

 

4,725

 

3,500

 

Tier 4QO

 

Hedge/Member

 

Increase

 

USD

 

2,750

 

2,750

 

3,500

 

3,500

 

Tier 4QO

 

Page 3 of 3

 

8/24/2011

 

20 South Wacker Drive Chicago, IL 60606 Ph.: (312) 648-3888 Fax: (312) 930-3187 cmegroup.com