Description

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

Summary

Indian Clearing Corporation Limited (ICCL) has issued an update continuing additional margin requirements on Gold and Silver commodity derivatives contracts during the tender period. This circular is in continuation of earlier notice dated 29 October 2025 regarding additional margin imposition in all variants of Gold and Silver contracts. The measure is part of periodic review of risk management adequacy to mitigate systemic risk.

Key Points

  • Additional margins will continue to be levied during the tender period for specified Gold and Silver contracts
  • 4.5% additional margin applies to all Silver variants (SILVERKG, SILVERM, SILVER)
  • 1% additional margin applies to all Gold variants (GOLD, GOLDM)
  • This is a continuation of previously imposed margin requirements from October 2025
  • Implemented as part of ICCL’s periodic risk management review

Regulatory Changes

No new regulatory changes introduced. This circular maintains the status quo of additional margin requirements previously communicated in ICCL circular no. 20251029-28 dated 29 October 2025.

Compliance Requirements

  • All clearing members and participants must continue to maintain additional margin requirements for specified contracts
  • Members must ensure adequate collateral is available to meet the enhanced margin obligations
  • Compliance with ICCL Rules, Bye-laws, and Regulations remains mandatory

Important Dates

  • 28 November 2025: Expiry date for SILVERKG and SILVERM contracts (4.5% additional margin during tender period)
  • 28 November 2025: Expiry date for SILVER contract (4.5% additional margin during tender period)
  • 05 December 2025: Expiry date for GOLD and GOLDM contracts (1% additional margin during tender period)

Impact Assessment

Market Impact: Medium - The continuation of additional margin requirements affects liquidity and capital requirements for traders holding positions in Gold and Silver contracts during the tender period.

Operational Impact: Clearing members and participants dealing in commodity derivatives must maintain higher margins, impacting their capital allocation and trading strategies for these specific contracts.

Risk Management: This measure aims to mitigate systemic risk during the tender period when delivery obligations materialize, ensuring market stability and adequate risk coverage.

Financial Impact: Traders will continue to face higher margin requirements - 4.5% for Silver variants and 1% for Gold variants - which increases the cost of carrying positions through the tender period.

Impact Justification

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