Hefty increase in margin rules from the NYMEX, effective earlier this week:
The New York Mercantile
Exchange said on Tuesday it will increase margins for its crude
oil and related futures contracts, beginning at the close of
business on Wednesday.
Margins for the crude oil, crude oil calendar swap, and
crude oil financial futures contracts will go up to $7,250 from
$6,500 for clearing members, to $7,975 from $7,150 for members
and to $9,788 from $8,775 for customers, NYMEX said in a
Margins for the NYMEX miNY crude oil futures contract will
rise to $3,625 from $3,250 for clearing members, to $3,988 from
$3,575 for members and to $4,894 from $4,388 for customers. Margins for the NYMEX MACI index futures contract will
increase to $1,450 from $1,300 for clearing members, to $1,595
from $1,430 for members and to $1,958 from $1,755 for
That may be one source of pressure on Crude this week . . .
UPDATE: May 30 , 2008 11:00am
For all you folks who are Google-impaired:
These come from the 2008 NYMEX Press Releases.
Incidentally, this is what the Fed should have done with Stock margin requirements in 1998-99: gradually increase required capital.
NYMEX to raise margins for crude, related futures
Reuters Tue May 6, 2008 10:25pm BST