UK CFD and Forex broker City Index, a part of StoneX Group Inc (NASDAQ:SNEX), today announced changes to its margin requirements for trades in Silver.

The new margin rates, which will be implemented later today, start from 15%.

City Index said:

“Due to recent volatility in the markets, we are increasing our margin rates on Silver, from 10pm GMT on Thursday 4 February 2021 (for non-MetaTrader clients) and before markets open on Sunday 7 February 2021 (for MT clients). The new required margin starts at 15%”.

A raft of other CFD brokers have adjusted their margin requirements applying to trades in CFDs on silver due to recent spike in market volatility and the so-called Reddit frenzy. Admiral Markets and Vantage FX are among the companies to have increased these margin requirements.

The market volatility has also led to a wave of restrictions placed by companies on options on actively traded stocks and the stocks themselves. The most prominent example is Robinhood whose drastic restrictions on trading in GameStop shares sparked traders’ anger and has resulted in a wave of lawsuit targeting the company. Interactive Brokers had put positions in certain shares into “liquidation only” but has shortly thereafter relaxed the restrictions.