§ Mr. Hooleyasked the Chancellor of the Exchequer if he will take steps to limit speculation in commodities, particularly metals, by requiring margin deposits to be raised from 10 per cent. to 30 per cent. or possibly 50 per cent. depending on market conditions.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 26th May 1976; Vol. 912, c. 210], gave the following information:
Firms dealing in the commodity market normally require their clients to cover 330W of children under five years of age for: (a) families with one, two and four children under five years of age and (b) families with one, two and four children over five years of age, earning three-quarters of the average wage, the average wage, twice the average wage and five times the average wage.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 24th May 1976; Vol. 912, c. 89], gave the following information:
orders with a minimum of a 10 per cent. deposit. However, it is also market practice when prices are volatile to call for a higher level of deposit. This is a matter of individual judgment, based upon the movement of prices dictated by market conditions. Neither the Government nor the Bank have the power to prescribe the level of deposit required from investors. The Bank do, however, monitor the commodity markets closely and are able to advise when they consider the level of speculative activity has risen too high. The markets can then take any necessary corrective action themselves.