Did the CME deliberately let the air out of the stupefying silver bubble? Officials from the exchange company met in late April and agreed to hike margin requirements for trading firms, the New York Times reports.. But the increase, which took effect the next day, had no effect; in fact, the price kept on rising.

So the CME decided that more hikes were necessary, at least four more. The final increase in silver margins kicked in after the market closed Monday.

No one can argue that the moves haven't had an effect, as the market really tanked last week. Many think it will go even lower. Margin rates are now as high as $21,600 per contract, 84 percent higher than it was before the CME began the recent increases.

Margin requirement shifts are not usually so newsworthy. Silver margins were raised five times and lowered once in 2010. But you have to give some credit to the CME for undertaking such a move at such a time. Of course, the exchange company would never agree that it is deliberately popping a bubble. In its words, it is lowering risk for participants across the board.

In any case, this is a big issue that the industry will have to ponder in the Dodd-Frank era. Do the CME's moves suggest that exchanges are capable of wisely setting margin requirements all on their own?

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