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| just so they don`t start fiddling with margin requirements to bailout silver shorts, like they`ve done in the past to put a thumb on the scale.
AI Overview
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Historic margin requirements for CME silver futures are dynamic and are available through the CME Group's historical data service. Margin requirements are primarily set by exchanges like the CME Group and change frequently based on the volatility of the underlying asset to manage risk. For example, in May 2011, margin requirements were raised multiple times over two weeks due to increased price volatility.
Factors influencing margin requirements
Volatility: Margin requirements increase during periods of high price volatility to mitigate the risk of default.
Heightened Risk Profile (HRP): The CME Group sets requirements based on a risk-based algorithm. An HRP applies a higher margin requirement (110% of maintenance) than a non-HRP (100% of maintenance).
Market Conditions: Margin levels are subject to change based on market conditions and are not static, though they are based on a one-day time horizon.
How to access historical data
CME Group's historical data services: The CME Group provides historical margin data through its CME DataMine and wiki resources.
What the data includes: This data includes historical outright margin data by product and expiration.
Potential uses: Hedge funds and other firms may use this data for risk management and to estimate margin impacts.
Example of a past margin requirement change
May 2011: CME Group raised the margin for silver futures five times in two weeks, increasing the requirement by about 84%.
Reason: This was a response to the price volatility of silver, which had just reached a record high.
Specifics: Prior to late April 2011, the margin was around $8,700 per contract. By early May, it had been raised to $14,000, then to $16,000, as shown in a Reuters article. | |
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Short squeeze
