CME Cuts Trading Margins on Copper Futures by 3.7%

By Dow Jones Business News, 
A A A


By Tatyana Shumsky

NEW YORK--Exchange operator CME Group Inc. ( CME ) reduced the amount of collateral required to trade the benchmark copper futures contract on Thursday.

The CME, which owns the Comex division of the New York Mercantile Exchange, trimmed copper margins by 3.7% at close of trading Monday, in a notice emailed Thursday afternoon.

Speculative investors in the benchmark 25,000-pound copper contract can now deposit $2,860 to open a position and maintain $2,600 of that to keep that position overnight. That's down from the previous initial margin of $2,970 and maintenance margin of $2,700.

The initial and maintenance margin requirements for producers or consumers of copper have been reduced to $2,600 from $2,700.

The CME said the changes came as part of a normal review of market volatility.

Write to Tatyana Shumsky at tatyana.shumsky@wsj.com

Corrections & Amplifications

This was corrected at 4:41 p.m. ET because the original misstated the percentage. The cut was by 3.7%, not 3.4%.

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  (END) Dow Jones Newswires
  08-21-141630ET
  Copyright (c) 2014 Dow Jones & Company, Inc.


This article appears in: Commodities

Referenced Stocks: CME

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