Nymex To Suspend Palladium Futures Margin Increase

The New York Mercantile Exchange today announced that the margin increases on its palladium futures contract originally scheduled for August 28 have been suspended and the current rates will remain in effect until further notice.

As of the close of business on Thursday, August 24, margins were raised on the August and September 2000 contracts to $125,000 from $100,000 for clearing members; to $137,500 from $110,000 for members; and to $168,750 from $135,000 for customers. Rates were also raised on spreads involving the August or September 2000 contract to $110,250 from $85,250 for clearing members; to $121,275 from $93,775 for members; and to $148,838 from $115,088 for customers.

These rates will remain in effect until further notice.

The Exchange had originally announced that, as of the close of business on Monday, August 28, margins would be increased on the September 2000 contract to $150,000 for clearing members; to $165,000 for members; and to $202,500 for customers and rates on spreads involving the September 2000 contract would be increased to $135,250 for clearing members; to $148,775 for members; and to $182,588 for customers.