Description

ICCL modifies additional margin requirements for Gold and Silver commodity derivatives contracts, removing 1% margin from November 2025 expiry contracts entering tender period and applying it to December 2025 expiry contracts.

Summary

Indian Clearing Corporation Limited (ICCL) has issued a modification to its earlier circular dated October 22, 2025, updating additional margin requirements for gold and silver commodity derivatives. The key changes include removing the 1% additional margin from November 2025 expiry contracts (GOLD and GOLDM) once they enter the tender period starting October 30, 2025, and simultaneously applying this 1% additional margin to December 2025 expiry contracts. Similar treatment will apply to silver contracts on a rolling basis.

Key Points

  • 1% additional margin on GOLD and GOLDM November 2025 expiry contracts will be removed from beginning of day (BOD) October 30, 2025
  • 1% additional margin will be applied to GOLD and GOLDM December 2025 expiry contracts from BOD October 30, 2025
  • Additional margin on near month contracts (not in tender period) will continue until further notice
  • For silver contracts, additional margin will be removed when contracts enter tender period and applied to next expiring contracts
  • “Near Month” for this circular means near month contract expiry not in tender period
  • Circular issued by Chief Risk Officer Sushant Majhi

Regulatory Changes

This circular modifies ICCL circular no. 20251022-1 dated October 22, 2025. The changes represent a periodic review of risk management measures to mitigate systemic risk in commodity derivatives trading. The modification implements a rolling margin structure that shifts additional margin requirements from expiring contracts entering tender period to the next available near month contracts.

Compliance Requirements

  • All clearing members and participants must adjust their margin calculations accordingly from BOD October 30, 2025
  • Members must ensure adequate margin coverage for December 2025 gold contracts (GOLD and GOLDM)
  • Members should monitor silver contract expiries for similar rolling margin applications
  • Position management and risk monitoring should account for the margin changes

Important Dates

  • October 29, 2025: Circular notice date
  • October 30, 2025 (BOD): Effective date for margin changes
    • Removal of 1% additional margin on GOLD and GOLDM November 2025 expiry
    • Application of 1% additional margin on GOLD and GOLDM December 2025 expiry
  • November 5, 2025: Expiry date for GOLD and GOLDM November contracts
  • December 5, 2025: Expiry date for GOLD and GOLDM December contracts

Impact Assessment

Market Impact: Medium - affects commodity derivatives traders with positions in gold and silver contracts. The margin shift may influence trading strategies around contract rollovers.

Operational Impact: Clearing members need to update their margin monitoring systems and ensure clients maintain adequate margins for December 2025 contracts. The 1% additional margin requirement continues on a rolling basis, requiring ongoing position management.

Risk Management: The measure is part of ICCL’s periodic review to ensure adequate risk coverage and mitigate systemic risk in commodity derivatives, particularly during tender period transitions.

Contact: Risk Department - risk.monitoring@icclindia.com / +91-22-2272 5186/8902

Impact Justification

Affects commodity derivatives traders in gold and silver; routine margin adjustment based on contract expiry cycles and tender periods; no immediate systemic impact but requires position management by affected members.