CME Hikes Precious-Metal Margins Again After Price Swings (3)

CME Group raised margin requirements on precious-metal futures for the second time in the space of a week, following a bout of volatility that saw prices spike then retreat.

The higher collateral that traders must set aside to hold futures positions in gold, silver, platinum and palladium is the latest evidence of an historic year-end surge in volatility across precious metals markets. Silver in particular has seen huge price swings as it blew through levels that until recently seemed unthinkable. The latest changes will take effect after the close of business on Wednesday.

Clearinghouses like the CME’s ask brokers to ...