CME Group Raises Margins as Precious Metals Plunge Following Federal Reserve Chair Nomination
CME Group raised margin requirements for precious metals after prices collapsed. Forced liquidations accelerated declines in gold and silver markets today.
Insights:
CME Group Inc. announced hikes in margins on its precious metal futures on Saturday and said the changes were set to take effect after market close on Monday. This decision follows a sharp collapse in metal prices that was triggered by the nomination of Kevin Warsh kevin warshas the next chair of the Federal Reserve. The metals price collapse has been intensified by these margin hikes and forced liquidations which accelerated a rout in gold and silver and produced spillovers into global equity markets.
