Description

Continuation of additional margin requirements on gold and silver contracts during tender period, with 4.5% margin on silver and 1% on gold variants.

Summary

ICCL continues to levy additional margins on gold and silver commodity derivative contracts during the tender period as part of periodic risk management measures. Silver variants will have 4.5% additional margin while gold variants will have 1% additional margin.

Key Points

  • Additional margin continuation in accordance with ICCL circular no. 20251029-28 dated 29 October 2025
  • Measure implemented to mitigate systemic risk and ensure adequacy of risk management
  • Applies to all members and participants trading in specified gold and silver contracts
  • Margins apply specifically during the tender period of respective contracts

Regulatory Changes

No new regulatory changes. This circular provides an update continuing previously announced margin requirements during the tender period for specified contracts.

Compliance Requirements

  • Members and participants must maintain additional margins as specified for the listed contracts
  • Additional margin of 4.5% required on SILVERKG, SILVERM (28-Nov-25 expiry) and SILVER (05-Dec-25 expiry)
  • Additional margin of 1% required on GOLD and GOLDM (05-Dec-25 expiry)
  • Margins to be maintained throughout the tender period

Important Dates

  • 28 November 2025: Expiry date for SILVERKG and SILVERM contracts (4.5% additional margin during tender period)
  • 05 December 2025: Expiry date for SILVER, GOLD, and GOLDM contracts (4.5% for silver, 1% for gold during tender period)
  • Circular Date: 24 November 2025

Impact Assessment

Market Impact: High - Additional margins significantly increase capital requirements for traders holding positions in gold and silver contracts during tender period. The 4.5% margin on silver is particularly substantial and may affect trading volumes and liquidity.

Operational Impact: High - Members must ensure adequate capital allocation and margin coverage for positions in these precious metal contracts. Risk management systems must account for these additional margin requirements.

Trader Impact: Traders with open positions in the specified contracts will face increased margin obligations, potentially requiring additional funding or position adjustments before and during the tender period.

Impact Justification

High margin requirements on precious metals contracts directly impact trading costs and capital requirements for market participants during tender period