The Chicago Mercantile Exchange (CME) has moved to tighten risk controls in the precious metals market. On Tuesday, January 13, the exchange shifted a margin requirement from fixed dollar amounts to a percentage of contract value as prices accelerated to record levels.

Under the old framework, CME charged a flat margin per futures contract and adjusted requirements only during periods of extreme market stress. The new system automatically links margin requirements to the metal's price. As prices rise, the amount of cash traders must post increases in tandem, reducing effective leverage and forcing market participants to hold more collateral just to maintain existing positions. It is a self-adjusting risk mechanism designed to keep pace with fast-moving markets.

The Unstoppable Rally

The main culprit for the move is silver. In the first fourteen days of 2026, spot silver surged ...