CME accepts gold as collateral for trades

gold bars

Gold is the first commodity that can be used for margins for CME trades, ranging from crude oil, gold, grains, equity indexes and Treasury bonds.

"During conversations with the London bullion market, it became clear that a lot of participants were holding physical gold, and this was proving costly to them," says Jeremy Hughes, spokesperson for CME Clearing. "They were interested to find out if they would look at accepting gold as collateral as an alternative to debt or equities."

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