Description

ICCL continues additional margins on Gold and Silver contracts during tender period - 4.5% for Silver variants and 1% for Gold variants.

Summary

Indian Clearing Corporation Limited (ICCL) has issued an update continuing additional margin requirements on Gold and Silver commodity derivative contracts during the tender period. This circular is a continuation of ICCL circular no. 20251029-28 dated October 29, 2025, maintaining the same margin levels as part of periodic risk management review to mitigate systemic risk.

Key Points

  • Additional margins continue to be levied during tender period for specific Gold and Silver contracts
  • Silver contracts (SILVERKG, SILVERM expiring Nov 28, 2025 and SILVER expiring Dec 5, 2025) subject to 4.5% additional margin
  • Gold contracts (GOLD and GOLDM expiring Dec 5, 2025) subject to 1% additional margin
  • Measure implemented as part of ICCL’s periodic review of risk management adequacy
  • Circular issued by Chief Risk Officer - Risk Management

Regulatory Changes

No new regulatory changes introduced. This circular maintains the additional margin requirements previously announced in the October 29, 2025 circular (20251029-28).

Compliance Requirements

  • All Members/Participants must continue to maintain additional margins as specified
  • Margins apply specifically during the tender period of the listed contracts
  • Silver variants: Additional margin of 4.5% during tender period
  • Gold variants: Additional margin of 1% during tender period
  • Members must ensure adequate risk capital to meet these margin requirements

Important Dates

  • Circular Date: November 24, 2025
  • SILVERKG Expiry: November 28, 2025
  • SILVERM Expiry: November 28, 2025
  • SILVER Expiry: December 5, 2025
  • GOLD Expiry: December 5, 2025
  • GOLDM Expiry: December 5, 2025

Impact Assessment

Market Impact: Medium - Continues to affect liquidity and trading costs for Gold and Silver commodity derivative contracts during tender periods. The additional margins increase capital requirements for market participants holding positions in these contracts.

Operational Impact: Members and participants trading in Gold and Silver derivatives must maintain higher margin requirements during tender periods, impacting their capital allocation and position management strategies.

Risk Mitigation: The continued additional margins serve to reduce systemic risk in the commodity derivatives segment, particularly during the critical tender period when physical delivery obligations may arise.

Affected Contracts: Five specific contracts across Gold and Silver variants with near-term expiries (November 28 and December 5, 2025).

Impact Justification

Continuation of existing additional margin requirements for Gold and Silver contracts during tender period affects commodity derivative traders but no new changes from previous circular