War On "Speculators" Goes Global: Shanghai Gold Exchange Hikes Silver Margins For Third Time In A Month

Tyler Durden's picture

Globalization sure can be fun: just as the Fed has now ordained Japan to carry out the global reliquification scheme in the form of a new, and powerful batch of QE, so the regional war on (Fed liquidity engorged) speculators has just gone global. Following 5 consecutive silver margin hikes by the CME (which oddly did nothing on yesterday's price collapse even as the silver vol surged to near record levels) at which point it would appear silly for the exchange to continue its speculator eradication campaign, the memo has now been sent to foreign bourses. Sure enough, the Shanghai Gold Exchange has just announced it is hiking both the silver margin to 19% as well as the price limit on gold to 13%.

From Marketwatch:

The Shanghai Gold Exchange said Thursday it will raise margin requirements for silver futures as part of risk-control measures, its third round of increases in less than a month, according to a statement posted on the exchange's web site. Margin requirements will rise to 19% of a contract's value from 18%, while the daily price limit for the one kilogram silver forward contract will rise to 13% from 10% above or below the previous session's close. The new trading requirements will be effective from May 13. The exchange announced previous rounds of increases to margins and price limits on May 5 and April 25.

And the googletranslated release:

Today, silver Ag (T + D) price fluctuations, the night market transactions occur daily limit. Under the Exchange "deferred settlement trading rules" and "risk control and management measures" the relevant provisions, if Ag (T + D) contract to seal the close limit down, the exchange will enhance the Ag (T + D) contract margin ratio while price limits amplification range, please deposit an additional member to prepare well in advance of work and customer notification.

Enhance Ag (T + D) ratio and price limits margin contract specific content: May 12 at the end of liquidation, the silver Ag (T + D) contract to increase the ratio by 1 percentage point margin to 19%, May 13 the date of Ag (T + D) ratio of the contract price limits adjusted to 13%. If the Ag (T + D) Contract close open daily limit, no implementation of the above adjustments.

And so the heretofore localized war on "speculators" all of whom are merely trading with the trillions in excess and free liquidity created by the Fed, goes global. Bernanke will have you buying shares of Lulu instead of silver, if it's the last thing he does.