FMC raises margins on gold, crude

Initial margins on the gold contract has been raised to 5% of the value of the contract or value at risk

The Forward Markets Commission (FMC), the commodity derivatives market regulator, has raised initial margins on gold contracts at 5% of the value of the contract or value at risk (VaR) whichever is higher in view of the ongoing volatility on prices, effective September 2.

Along with that the FMC also imposed additional margin of 5% on all gold, silver, brent crude, crude oil and natural gas contracts on national exchanges till further orders.