Description

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

Summary

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

Key Points

  • Additional margin of 2% levied on all Silver near month futures contracts
  • Affects three contract variants: SILVER, SILVERM, and SILVERKG
  • Implemented as a risk mitigation measure following periodic review
  • Applies to near month contracts expiring in October and November 2025

Regulatory Changes

The ICCL has implemented enhanced margin requirements for silver futures contracts in accordance with its Rules, Bye-laws, and Regulations. The 2% additional margin will be applied on top of existing margin requirements for the following contracts:

  • SILVER (expiry: November 5, 2025): 2.00% additional margin
  • SILVERM (expiry: October 31, 2025): 2.00% additional margin
  • SILVERKG (expiry: October 31, 2025): 2.00% additional margin

Compliance Requirements

  • All clearing members and participants must ensure adequate margins are maintained for silver futures positions
  • Members must account for the additional 2% margin in their capital and risk management calculations
  • Positions held in the affected contracts will be subject to the enhanced margin from Begin of Day on October 17, 2025

Important Dates

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

Impact Assessment

This additional margin requirement will increase capital costs for market participants holding positions in silver futures contracts. Traders and hedgers in the commodity derivatives segment will need to allocate additional funds to meet the enhanced margin obligations. The measure is designed to strengthen the risk management framework and reduce systemic risk in silver futures trading during periods of heightened market volatility or concentration.

Contact Information:

Impact Justification

Affects silver futures traders with 2% additional margin requirement, moderate impact on commodity derivatives segment trading costs and capital requirements