Description

BSE imposes additional margin of 2.50% on Silver near month futures contracts and 1.00% on Gold near month futures contracts effective October 23, 2025, to mitigate systemic risk.

Summary

BSE has issued a circular modifying previous margin requirements for commodity derivatives. The exchange will impose an additional margin of 2.50% on all Silver near month futures contracts (SILVER, SILVERM, SILVERKG) and 1.00% on all Gold near month futures contracts (GOLD, GOLDM) effective from October 23, 2025. This measure follows a periodic review of risk management and aims to mitigate systemic risk in precious metals trading.

Key Points

  • Additional margin of 2.50% imposed on Silver near month futures (all variants)
  • Additional margin of 1.00% imposed on Gold near month futures (all variants)
  • This circular modifies ICCL circular no. 20251016-12 dated October 16, 2025
  • Changes effective from Thursday, October 23, 2025 (Begin of Day)
  • Applies to all contract variants including standard, mini, and kilogram contracts

Regulatory Changes

The Indian Clearing Corporation Limited (ICCL) has modified margin requirements for precious metals derivatives following periodic risk assessment:

Silver Contracts:

  • SILVER (Expiry: 05-Nov-2025): Additional Margin 2.50%
  • SILVERM (Expiry: 31-Oct-2025): Additional Margin 2.50%
  • SILVERKG (Expiry: 31-Oct-2025): Additional Margin 2.50%

Gold Contracts:

  • GOLD (Expiry: 05-Nov-2025): Additional Margin 1.00%
  • GOLDM (Expiry: 05-Nov-2025): Additional Margin 1.00%

Compliance Requirements

  • All members and participants must ensure adequate margin coverage for their positions in affected contracts
  • Members must arrange additional funds/collateral to meet the increased margin requirements
  • Clearing members should communicate these changes to their clients holding positions in these contracts
  • Risk management systems should be updated to reflect new margin parameters

Important Dates

  • Circular Date: October 22, 2025
  • Effective Date: October 23, 2025 (Begin of Day)
  • Silver Contract Expiries: October 31, 2025 (SILVERM, SILVERKG), November 5, 2025 (SILVER)
  • Gold Contract Expiries: November 5, 2025 (GOLD, GOLDM)

Impact Assessment

Market Impact:

  • Traders holding positions in near month gold and silver futures will face increased capital requirements
  • The margin hike may reduce speculative activity and trading volumes in these contracts
  • Position holders will need to infuse additional capital or reduce positions to meet margin calls

Operational Impact:

  • Clearing members must update their risk management systems immediately
  • Client margin calls will need to be processed before market opening on October 23, 2025
  • Potential for position liquidations if clients cannot meet increased margin requirements

Risk Mitigation:

  • The additional margins are designed to reduce systemic risk in volatile precious metals markets
  • Higher margins provide better protection against adverse price movements and default risk

Contact Information:

Impact Justification

Significant margin increase affecting all gold and silver near month futures contracts, requiring immediate capital adjustments by market participants effective next trading day.