Initial Margin Analysis, 12 May 2008
Mon 12 May 2008
The May 12th 2008 Initial Margin changes represent significant reductions across the board
Following the last 6 months of generally lower market price volatility, the new margin changes (commencing COB May 12th 2008) will show an overall reduction in the headline Initial Margin levels.
Initial Margins for a base load quarter will now equate to an average of $3.35/MWh and for a peak period quarter it will now equate to an average of $4.34/MWh. Base load Calendar Year option Initial Margins will now equate to an average of $1.63/MWh.*
Robust trading liquidity has lead to more active market pricing (including more on screen trades and bids and offers on the close) which is supporting the settlement price process. Another key benefit of this is that it assists in optimising the setting of initial margins (by removing initial margin volatility associated with less consistent end of day price support).
If you would like to discuss this further please feel free to contact a member of the d-cyphaTrade Team on 1800 330 101.
*Please refer to the Initial Margin Schedule for individual product Initial Margin details.