Description

Tender period margin schedule for commodity derivatives (GOLD, GOLDM, SILVER, SILVERKG, SILVERM) on BCX segment for January 2026, detailing progressive margin increases from 5% to 25% during tender period.

Summary

BSE has published the Tender Period Margin (TPM) tracker for commodity derivatives on the BCX segment for January 2026. The circular outlines progressive margin increases during the tender period for GOLD, GOLDM, SILVER, SILVERKG, and SILVERM futures contracts. Margins escalate from 5% to a minimum delivery margin of 25% as expiry approaches.

Key Points

  • Tender period margins apply to commodity futures contracts (FUTCOM) on BCX segment
  • Five commodities covered: GOLD, GOLDM, SILVER, SILVERKG, and SILVERM
  • Two different expiry dates: January 5, 2026 (GOLD, GOLDM, SILVER) and January 30, 2026 (SILVERKG, SILVERM)
  • Progressive margin increase structure: 5% → 10% → 15% → 20% → 25% (minimum delivery margin)
  • Holiday periods (Jan 3-4, 2026 and Jan 24-26, 2026) noted in the schedule
  • Margins increase daily during tender period leading up to expiry

Regulatory Changes

No new regulatory changes introduced. This is a standard operational circular providing the margin schedule for the upcoming month.

Compliance Requirements

  • Trading members must ensure adequate margin collection from clients holding positions in specified commodity futures during tender period
  • Margin requirements increase progressively as contracts approach expiry
  • Minimum delivery margin of 25% applies on expiry date
  • Members must adhere to the published margin schedule for risk management

Important Dates

GOLD, GOLDM, SILVER (Expiry: January 5, 2026):

  • December 30, 2025: 5% margin
  • December 31, 2025: 10% margin
  • January 1, 2026: 15% margin
  • January 2, 2026: 20% margin
  • January 3-4, 2026: Holiday
  • January 5, 2026: 25% margin (expiry)

SILVERKG, SILVERM (Expiry: January 30, 2026):

  • January 23, 2026: 5% margin
  • January 24-26, 2026: Holiday
  • January 27, 2026: 10% margin
  • January 28, 2026: 15% margin
  • January 29, 2026: 20% margin
  • January 30, 2026: 25% margin (expiry)

Impact Assessment

Market Impact: Medium - affects liquidity and trading activity in commodity derivatives during tender period as higher margins may reduce speculative positions.

Operational Impact: Trading members and clients with open positions in these commodity futures must plan for increased margin requirements. The progressive increase helps manage delivery risk and ensures adequate collateral as contracts approach physical delivery.

Risk Management: The escalating margin structure reduces settlement risk and ensures participants are adequately capitalized for potential delivery obligations. The 25% minimum delivery margin on expiry date provides substantial buffer for final settlement.

Impact Justification

Important for commodity derivatives traders during tender period; impacts margin requirements for GOLD and SILVER futures expiring in January 2026