With Now Daily Margin Hikes In Silver, Is The SLV ETF Itself Next?

Tyler Durden's picture

Following relentless margin hikes in silver on various exchanges, here are some thoughts on what may happen as the "regulators" do everything in their power to bring down commodity prices down as the broader population increasingly creates their own gold (and as the case may be silver) standard.

From Shortetflist

Could FINRA raise the margin requirement on the Silver ETF (NYSE: SLV)?

Absolutely.

After trading 200 MM shares per day, along with outpacing the daily
volume in the SPY, it is safe to say that the Silver ETF is leading the
futures at this point so here is the question I pose.

When is Finra going to raise the margin on the SLV ETF like it did on all the leveraged and inverse products a couple of years ago?

Right now to buy the SLV etf eats up about 22K in margin buying power,  imagine if this were doubled?

FINRA and other folks are keenly aware of this trading vehicle,
particularly when an unhealthy market exists.  Now if the Silver ETF
trading settles down to normal levels, probably not much will happen but
if it keeps this crazy pace up,  it is very difficult to rule this out.

Just some food for thought on where this thing could go.