[24 Nov] Sicom Cuts Margins for Trading In Rubber Contracts

The Singapore Commodity Exchange Monday reduced the outright initial margin for non-spot month rubber contracts to $608 a lot from $675/lot.

The outright maintenance margin has been cut to $450/lot from $500/lot.

For the spot month contract, initial and maintenance margins have been cut to $153/lot and $113/lot from $169/lot and $125/lot respectively.

One lot is equivalent to five metric tons.

The exchange didn't give any reason for the changes, but traders said lower margins may have been introduced to adjust with rising prices to maintain enough liquidity and trading volumes and even increase them further.

(Source: http://irco.biz)