Raising the cost of playing the market. They will have to make it cash and carry eventually, no more margin guys that can control price using leverage, puts and shorts.
As Bloomberg reports, the new approach will set margins based on a percentage of so-called notional, the CME said in a notice. Previously, they were based on a dollar amount.
The shift takes effect from Tuesday’s close and follows a “normal review of market volatility to ensure adequate collateral coverage,” the CME said.
CME Shifts Margin-Math As Silver Soars Amid Thin London Inventories, China Export Controls | ZeroHedge
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