(Bloomberg) -- The CME Group is raising margins on Comex silver futures by 18% after futures surged to an eight-year high, the exchange said in a statement.
Margins will rise to $16,500 per contract from $14,000, effective Feb. 2, according to the exchange. The decision is based on “the normal review of market volatility to ensure adequate collateral coverage,” it said in a statement.
The increase means those who want to trade silver futures will need to put up more collateral to ensure they can meet their obligations. While the exchange routinely raises margins when a contract is soaring or extremely volatile, Monday's move could edge out smaller players who don't have enough cash to make the necessary deposits.
READ: Silver Prices Surge to Eight-Year High Amid Reddit-Fueled Frenzy
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