UNITED STATES June 28 2016 6:32 AM
NEW YORK (Scrap Register): Margins will rise for Comex gold futures at the close of business on Monday, according to a notice from exchange operator CME Group.
In the case of the main Comex gold contract, the margin for new speculative positions will rise to $6,050 from $4,950. The maintenance margin for existing speculative, plus all hedge positions, will rise to $5,500 from $4,500.
Margins act as collateral on trades in the futures market. CME Group said the increase was “per the normal review of market volatility to ensure adequate collateral coverage.”
At one point Friday, most-active gold futures were up some $100 an ounce after the U.K. voted to leave the European Union, before finishing with a gain of nearly $60.
There was also volatility in other markets. As a result, CME Group also increased margins for a number of currencies, including the euro, British pound and Japanese yen futures, as well as interest-rate futures, including 10-year U.S. Treasury notes.