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China’s largest gold exchange, The Shanghai Gold Exchange will raise trading limits and margin requirements on its gold and silver forward contracts on Sept. 9 to prevent excessive volatility.

05 Sep 2011

SHANGHAI (Commodity Online) : China’s largest gold exchange, The Shanghai Gold Exchange will raise trading limits and margin requirements on its gold and silver forward contracts on Sept. 9 to prevent excessive volatility.

In a statement,SGC said it will temporarily raise trade margins and daily trading limits for both its gold and silver forward contracts ahead of a long weekend to allow traders more latitude to adjust to overseas price movements.

Chinese exchanges are closed Sept 10-12 for the Mid-Autumn Festival.

Trading margins for the gold forward contract, Au(T+D) , will be raised starting Sept 9 to 13 percent from 12 percent, while the daily circuit breaker would be lifted to 10 percent from 9 percent.

The silver gold forward contract, Ag(T+D) , will also see its trading margin raised by one percentage point to 16 percent, while daily movement will be raised to 12 percent, from 10 percent.

The SGE said the collateral and daily price limits for both contracts would revert back to their pre-holiday levels on Sept. 14 if those limits were not breached on the first day of market re-opening on Sept 13.

 


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COMMENTS (3)
John Bull
09 Sep 2011
So there we are, 9 Sept. And gold is up.
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Mike
05 Sep 2011
every time they raise margin requirements it just brings the stronger hands in and the little guy buys the physical metal,cant wait for the pog to go down! I have a itchy trigger finger!
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Paul Prichard
05 Sep 2011
That’s it, push more people into the physical market then who will take the opposite side of a short contract ?
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