Margin requirements to be raised for holiday

The Shanghai Futures Exchange will raise the minimum margin requirement during the upcoming National Day holiday to reduce risk in volatile commodities markets, the South China Morning Post reported. The exchange said on Tuesday that the minimum requirement rate would rise to 9% from as low as 5% beginning with Thursday’s settlement. The requirement will return to normal when the holiday ends on October 6. The larger margin will lead to smaller volumes in commodity trading. The Shanghai Futures Exchange has raised margin requirements during every public holiday this year.