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CME is paid on volume, so they are trying to encourage more participation. I think it's always a balancing act between responsibility (aka risk management) of margin policies vs profits from increased participation.
Indeed. They try to push the envelope with creating as much volume (which translates to profit) as possible without facing a backlash for too much volatility (from politicians, whales, etc).
The weather on volatility has been quiet for awhile, so I guess they bump the margins down, increase volume and profits and test to see whether the "market" accepts those levels of volatility or gives pushback and rejects those levels.
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
Exchanges do not change their margins in order to increase profit. Margins are based on volatility, the notional value of the contract, open interest and when it comes to physical commodities like oil and gold it could also be a reflection of uncertainty (political/economical) as well.
Keep this in mind: the CME group is there to service institutional customers, not us the retail guys.
Therefore, the increase and decrease in margins is a to assist with risk management for the larger players.
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