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Forex Volumes Figures and New Treasury Margins

A while back the margin requirements on silver were raised in a fairly well publicized fashion as a result of increased volatility in that market. It was announced on Friday (and repeated through the markets this morning) that the CME Group will be hiking margin requirements on Treasury futures as of the end of business today. This has created considerable chatter, but doesn’t look likely to have much real impact. As I heard at least one market participant note, while the increase if large on a percentage basis (20%), it is small in terms of the actual notional amount (1%).

I’ve said before that I don’t consider margin requirement changes as things that turn markets or cause major disturbances. Most major players in these markets are not leveraged to the point where this sort of things makes a huge difference. If you’re only leveraged at 5 or 10 to 1, adding a percentage point to your margin requirement isn’t going to move the needle.

In other news, the results of the April forex trading volume surveys done by the central banks and regional monetary authorities are all available. Here are the links:

UK: http://www.bankofengland.co.uk/markets/forex/fxjsc/fxturnresults110725.pdf

US: http://www.newyorkfed.org/fxc/volumesurvey/

Singapore: http://www.sfemc.org/statistics.asp

Japan: http://www.fxcomtky.com/index_e.html

Canada: http://www.cfec.ca/fx_volume.html

Australia: http://www.rba.gov.au/afxc/statistics/fx-turnover-reports/

By John

Author of The Essentials of Trading

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