Description

ICCL imposes 2% additional margin on Silver near month futures contracts (SILVER, SILVERM, SILVERKG) effective October 17, 2025 following periodic risk management review.

Summary

Indian Clearing Corporation Limited (ICCL) has announced the imposition of a 2% additional margin on Silver near month futures contracts across all variants (SILVER, SILVERM, SILVERKG). This measure follows a periodic review of risk management practices and aims to mitigate systemic risk in the commodity derivatives segment. The change takes effect from October 17, 2025 (Begin of Day).

Key Points

  • Additional margin of 2% levied on all Silver near month futures contracts
  • Applies to three variants: SILVER (expiry Nov 5, 2025), SILVERM (expiry Oct 31, 2025), and SILVERKG (expiry Oct 31, 2025)
  • Measure implemented following periodic risk management review
  • Objective is to mitigate systemic risk in commodity derivatives
  • Notice issued by Chief Risk Officer - Risk Management, ICCL

Regulatory Changes

The margin requirements for Silver futures contracts have been increased by 2% across all near month contract variants. This represents an enhancement to existing margin framework under ICCL’s risk management protocols.

Compliance Requirements

  • All members and participants must ensure adequate margin coverage for Silver positions
  • Additional 2% margin must be maintained for affected Silver futures contracts
  • Members should adjust their collateral and margin calculations accordingly
  • Risk monitoring and position management systems should be updated to reflect new margin levels

Important Dates

  • Notice Date: October 16, 2025
  • Effective Date: October 17, 2025 (Begin of Day)
  • Contract Expiries Affected:
    • SILVER: November 5, 2025
    • SILVERM: October 31, 2025
    • SILVERKG: October 31, 2025

Impact Assessment

Market Impact: Moderate impact on silver futures traders who will need to allocate additional capital for margin requirements. The 2% increase may reduce leverage and potentially impact trading volumes in the near term.

Operational Impact: Members and participants need to ensure sufficient margin funding and may need to adjust position sizes or add collateral. Risk management systems require updates to incorporate the new margin parameters.

Risk Mitigation: The measure strengthens the risk framework for silver derivatives trading and enhances market stability by reducing potential systemic risks associated with silver price volatility.

Impact Justification

Routine risk management measure affecting silver futures traders with moderate 2% margin increase to mitigate systemic risk