CME Clearing is changing performance bond methodology again for leading metals from fixed dollar amounts to a percentage of notional, with the updated rates effective after Tuesday.
CME framed the move as part of its “normal review of market volatility to ensure adequate collateral coverage,” stating Clearing House Risk Management staff approved the updated performance bond requirements.
CME explicitly highlighted the methodology shift in two bullets: it “currently sets margins for Gold, Silver, Platinum and Palladium based on a dollar amount,” and “with this change” will set those margins “based on a percentage of notional.”
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In the SPAN minimum performance bond requirements for COMEX 5000 Silver Futures, Non-HRP rates across show current initial at $32,500 and current maintenance at $32,500, moving to new initial at 9% and new maintenance at 9%.
For HRP lines across, the current initial is at $35,750 and current maintenance is at $32,500, shifting to new initial at 9.9% while new maintenance remains 9%.
Because the new framework is expressed as a percent of notional, the dollar performance bond becomes mechanically price-linked: the same contract count can require more or less collateral as silver prices change, instead of staying pinned to a fixed figure like $32,500.
This comes after CME, in a volatility-driven risk review to “ensure adequate collateral coverage,” raised performance bond requirements across gold, silver, platinum, and palladium into year-end 2025.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
