Description

BSE publishes tender period margin requirements for commodity derivatives (Gold, GoldM, Silver, SilverKG, SilverM) expiring in December 2025, detailing progressive margin increases during tender period.

Summary

BSE has released the Tender Period Margin (TPM) Tracker for December 2025 for the Commodity Derivatives Segment (BCX). The circular specifies progressive margin requirements during the tender period for Gold, GoldM, Silver, SilverKG, and SilverM futures contracts. Margins increase from 5% on the first day of the tender period to 25% (minimum delivery margin) on the expiry date.

Key Points

  • Tender period margins apply to commodity futures contracts approaching expiry
  • Margins increase progressively: 5% (Day 1), 10% (Day 2), 15% (Day 3), 20% (Day 4), 25% (Expiry)
  • Minimum delivery margin is set at 25% for all commodities
  • Gold, GoldM, and Silver contracts expire on December 5, 2025
  • SilverKG and SilverM contracts expire on December 31, 2025
  • Holiday periods (December 25, 27, 28) are marked for SilverKG and SilverM tender periods

Regulatory Changes

No new regulatory changes introduced. This is a routine publication of predetermined margin schedules for the upcoming month’s contract expiries in the commodity derivatives segment.

Compliance Requirements

  • Trading members must ensure adequate margin collection from clients holding positions in these contracts during tender period
  • Clients must maintain progressively higher margins as contracts approach expiry
  • Positions carried into tender period require increased funding to meet escalating margin obligations
  • Members must adhere to the specified margin percentages on respective dates

Important Dates

Gold, GoldM, Silver (Expiry: December 5, 2025):

  • December 1, 2025: 5% margin
  • December 2, 2025: 10% margin
  • December 3, 2025: 15% margin
  • December 4, 2025: 20% margin
  • December 5, 2025: 25% margin (delivery)

SilverKG, SilverM (Expiry: December 31, 2025):

  • December 24, 2025: 5% margin
  • December 25, 2025: Holiday
  • December 26, 2025: 10% margin
  • December 27-28, 2025: Holiday
  • December 29, 2025: 15% margin
  • December 30, 2025: 20% margin
  • December 31, 2025: 25% margin (delivery)

Impact Assessment

Market Impact: Medium - affects traders holding commodity futures positions near expiry. Progressive margin increases encourage position squaring or delivery preparation.

Operational Impact: Routine operational requirement for brokers and clearing members to monitor and collect additional margins from clients during tender period.

Liquidity Impact: May reduce speculative positions as expiry approaches due to higher margin requirements, potentially reducing liquidity in expiring contracts while encouraging rollover to next month contracts.

Risk Management: Designed to reduce settlement risk by ensuring adequate margin coverage for physical delivery obligations.

Impact Justification

Important for commodity derivatives traders to plan margin requirements during tender period. Affects position management but is routine regulatory information published monthly.