The New York Mercantile Exchange (NYMEX) has announced it is to lower margins on its platinum and palladium futures contracts.

According to the NYMEX, it will lower the margins effective from close of business on Tuesday.

The move will see margins for the platinum futures contract lowered by $750 to $2,500 for clearing members, while the margins for members would be placed at $2,750 from $3,575 and customers would see margins drop to $3,375 from $4,388.

The world's largest commodity futures exchange added that margins for the palladium futures contract would drop by $500 to $1,500 for clearing members, to $1,650 from $2,200 for members and customers would see margins lowered to $2,025 from $2,700.

Platinum contracts have increased by around four per cent since the start of 2007, while palladium contracts have seen 5.5 per cent growth in the same period.

Ÿ Adfero Ltd