Description

BSE imposes 2% additional margin on Silver Near Month Futures contracts across all variants (SILVER, SILVERM, SILVERKG) effective October 17, 2025, as a risk mitigation measure.

Summary

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. 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
  • Applies to three variants: SILVER (Nov 2025 expiry), SILVERM (Oct 2025 expiry), and SILVERKG (Oct 2025 expiry)
  • Measure implemented following periodic risk management review
  • Aimed at mitigating systemic risk in commodity derivatives
  • Notice issued by Chief Risk Officer of ICCL Risk Management Department

Regulatory Changes

The additional margin applies to 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

This is implemented in accordance with the Rules, Bye-laws, and Regulations of the Indian Clearing Corporation Limited (ICCL).

Compliance Requirements

  • All clearing members and participants must ensure adequate margin coverage for silver futures positions
  • Members need to factor in the additional 2% margin when calculating capital requirements
  • Positions must comply with enhanced margin requirements from the effective date
  • Members should adjust their risk management systems and client communications accordingly

Important Dates

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

Impact Assessment

Market Impact: The 2% additional margin will increase the capital requirements for traders holding positions in silver futures contracts. This may lead to reduced leverage and potentially lower trading volumes in near-month silver contracts.

Operational Impact: Clearing members and participants need to ensure they have sufficient funds to meet the enhanced margin requirements. Those with existing positions may need to provide additional collateral or reduce position sizes.

Risk Mitigation: The measure is designed to strengthen the risk management framework and protect the clearing corporation and market participants from potential volatility or default scenarios in the silver commodity market.

Contact Information: Members requiring clarification can contact the Risk Department at risk.monitoring@icclindia.com or +91-22-2272 5186/8902.

Impact Justification

Additional 2% margin on silver futures affects commodity traders' capital requirements but is a routine risk management measure with moderate impact on trading positions