Description

ICCL continues additional margin requirements on Gold and Silver contracts during tender period, with 4.5% on Silver and 1% on Gold variants.

Summary

Indian Clearing Corporation Limited (ICCL) has issued an update continuing the additional margin requirements on Gold and Silver commodity derivative contracts during the tender period. This circular follows the previous notice dated October 29, 2025, and is part of periodic risk management review to mitigate systemic risk. The additional margins of 4.5% on Silver variants and 1% on Gold variants will remain in effect during their respective tender periods.

Key Points

  • Additional margins continue to be levied on specific Gold and Silver contracts during tender period
  • Silver contracts (SILVERKG, SILVERM) expiring November 28, 2025: 4.5% additional margin
  • Silver contract (SILVER) expiring December 5, 2025: 4.5% additional margin
  • Gold contracts (GOLD, GOLDM) expiring December 5, 2025: 1% additional margin
  • Measures implemented as part of periodic risk management review
  • Continuation of requirements from previous circular 20251029-28 dated October 29, 2025

Regulatory Changes

No new regulatory changes introduced. This circular maintains existing additional margin requirements that were previously announced in October 2025.

Compliance Requirements

  • All clearing members and participants must ensure adequate margin coverage for the specified contracts
  • Members must maintain the additional margin requirements throughout the tender period
  • Compliance with ICCL Rules, Bye-laws, and Regulations regarding margin obligations

Important Dates

  • November 28, 2025: Expiry date for SILVERKG and SILVERM contracts (4.5% additional margin applies during tender period)
  • December 5, 2025: Expiry date for SILVER, GOLD, and GOLDM contracts (4.5% and 1% additional margins apply during tender period)
  • Circular Notice Date: November 24, 2025
  • Reference Circular: October 29, 2025 (ICCL circular no. 20251029-28)

Impact Assessment

Market Impact: Medium - Affects liquidity and trading costs for participants in commodity derivatives segment specifically dealing with Gold and Silver contracts approaching expiry.

Operational Impact: Clearing members and traders holding positions in these contracts must ensure adequate collateral to meet the enhanced margin requirements during tender period, potentially affecting position management strategies.

Financial Impact: Increased capital requirements for market participants with exposure to specified Gold and Silver contracts, particularly during the tender period when physical delivery becomes imminent.

Risk Mitigation: These measures are designed to reduce systemic risk during the critical tender period when contracts transition to physical delivery, protecting the clearing corporation and market participants from potential defaults.

Impact Justification

Continuation of existing margin requirements affecting commodity derivatives traders in gold and silver contracts during tender period