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ICE and CME raise margin requirements on FX futures contracts

The CME Group has raised margin requirements on FX futures contracts, US Treasury futures, and metal futures in response to increased market volatility. This follows changes made by the IntercontinentalExchange (ICE) to margin requirements on the US-dollar index and several currency pairs that took effect on Monday.

Initial margin requirements on the US Dollar index, the most traded product on the ICE, increased by $466 to $1929, an increase of 32%.

The new CME margin requirements seen below will come into effect after the close of business on Thursday, Aug 11.

FX contracts % Change in Initial Margin
AD/JY futures (AJ) 25%
African Rand futures (RA) 25%
Australian dollar futures (AD) 14.30%
Brazilian Real futures (BR) 16.60%
CD/JY Futures (CY) 14.30%
EC/AD cross rate futures (CA) 40%
EC/NKR futures (CN) -25%
E-micro AUD/USD futures (M6A) 14%
E-micro CHF/USD futures (MSF) 42.80%
E-micro JY/USD (MJY) 25%
E mini J-Yen futures (J7) 25%
EUR/TURK LIRA futures (TRE) 20%
Hungarian Forint (USD) futures (FR) 9%
Israeli Shekel futures (IS) 10%
Japanese Yen futures (JY) 25%
Japanese Yen/Renminbi futures (RMY) 15%
Mexican Peso futures (MP) 28.50%
Swiss Franc futures (SF) 42.80%
Comex Gold futures (GC) 22.20%

Source: CME Group

With recent trading volatility of the Swiss Franc reaching record levels it is perhaps unsurprising to see the biggest change in margin requirements on either exchange was for Swiss Franc futures contracts. Initial margin requirements increased from $3780 to $5400 for spec clients and from $2800 to $4000 for Hedge fund/member clients, amounting to a change of 42.8%.

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