UPDATE: LCH.Clearnet Ups LME Aluminum, Nickel Initial Margins

LONDON, May 17 -- LCH.Clearnet, which clears trades for the London Metal Exchange, said Friday it will increase initial margins on contracts for aluminum, nickel and steel.

The changes will be effective from the close of business May 18 and will be reflected in margin calls May 19.

Initial margins for aluminum will be increased to $165 a metric ton from a previous $150/ton. Nickel initial margins will be increased to $3,000/ton from $2,100/ton and the Mediterranean and Far East steel contracts will be raised to $60/ton from $50/ton.

Initial margins for the aluminum alloy contract will be increased to $140/ton from $125/ton and initial margins for the North American aluminum alloy contract will be raised to $150/ton from $140/ton.

LCH.Clearnet issues regular margin notices every three months, and makes ad-hoc adjustments if market volatility changes significantly.