CME Margin Adjust, Effective 10/31/08

osorico · Oct 30, 2008

BOOO! Effective 10/31/08, or more technically, after the close of business on 10/30/08

http://www.cme.com/clearing/rmspan/pbadv/files/Chadv08-299.pdf

Highlights...

ES = 6188
NQ = 4000
YM = 5625

nyxtrader · Oct 30, 2008

Bullshit....

I don't trade on Margin, so its all cash! MOFO's are pissing me off.

And you know the size i trade, it makes a big difference!

lassic · Oct 30, 2008

Joe the trader can't get no breaks
the man be always pressin', lol

jeb9999 · Oct 30, 2008

YM goes from $4376 to $5625, a 28.5% increase.

No more trying to attract traders to the YM by offering a lower percentage margin than the ES.

swtrader · Oct 30, 2008

Quote from jeb9999:

YM goes from $4376 to $5625, a 28.5% increase.

No more trying to attract traders to the YM by offering a lower percentage margin than the ES.

volitility is up DRAMATICALLY

one YM moves like 2 used to, a few months ago

Daal · Oct 30, 2008

Pretty soon california real estate will require a smaller down payment than a ES future

jeb9999 · Oct 30, 2008

Quote from swtrader:

volitility is up DRAMATICALLY

one YM moves like 2 used to, a few months ago

You missed the point of my post. CME/CBOT has always kept the margin for YM as a percentage of the contract value significantly (about 20%) below that of the ES margin. Now the 2 margins as a percentage of the contract value are almost equal.

ES from $5625 to $6188

YM from $4376 to $5625

stock777 · Oct 30, 2008

Should be 10,000 margin.

Be glad they let you gamble.

PocketChange · Oct 30, 2008

Quote from jeb9999:

You missed the point of my post. CME/CBOT has always kept the margin for YM as a percentage of the contract value significantly (about 20%) below that of the ES margin. Now the 2 margins as a percentage of the contract value are almost equal.

ES from $5625 to $6188

YM from $4376 to $5625

CME uses a set formula to determin margins. Its not the value of the contract but its based on the maximum losses that can be incurred. All rolls into SPAN margining system.

Understand the volatility has set new records. a few 100 point swing days has increased max risk. One benefit trading CME futures is we don't worry much about counter-party risk.