CME to Shift Precious-Metals Margin Settings as Prices Swing

CME Group will change the way it sets margins for gold, silver, platinum and palladium futures after a surge in prices and volatile trading.

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.

Precious metals have been the subject of an extraordinary rally over recent quarters, with the gains and price swings continuing into the new year. In ...