Description

Tender period margin schedule for commodity derivatives (Gold, Silver) expiring in February 2026, with progressive margin increases from 5% to 25% during tender period.

Summary

BSE’s Commodity Derivatives Segment (BCX) has released the Tender Period Margin Tracker for February 2026, outlining the progressive margin requirements for commodity futures contracts approaching expiry. The circular covers Gold (GOLD, GOLDM) and Silver (SILVER, SILVERKG, SILVERM) futures contracts with specific margin escalation schedules during their respective tender periods.

Key Points

  • Tender period margins apply to commodity futures approaching expiry
  • Initial tender period margin starts at 5% of contract value
  • Margins progressively increase to reach minimum delivery margin of 25%
  • Gold and GOLDM contracts expire on February 5, 2026
  • Silver, SILVERKG, and SILVERM contracts expire on February 27, 2026
  • Trading holidays on January 31 and February 1, 2026 affect Gold contracts
  • Margin increases occur daily during tender period

Regulatory Changes

No new regulatory changes introduced. This is a routine operational circular providing the margin schedule for commodity derivatives during their tender periods in accordance with existing risk management framework.

Compliance Requirements

  • Trading members must ensure adequate margins are collected from clients holding positions during tender period
  • Margin requirements must be met daily as per the published schedule
  • Positions not meeting margin requirements may be subject to closure or penalty
  • Members must adhere to the minimum delivery margin of 25% on expiry day

Important Dates

Gold & GOLDM (Expiry: February 5, 2026)

  • January 30, 2026: Tender period begins (5% margin)
  • January 31 - February 1, 2026: Trading holidays
  • February 2, 2026: 10% margin
  • February 3, 2026: 15% margin
  • February 4, 2026: 20% margin
  • February 5, 2026: 25% margin (expiry/delivery)

Silver, SILVERKG & SILVERM (Expiry: February 27, 2026)

  • February 23, 2026: Tender period begins (5% margin)
  • February 24, 2026: 10% margin
  • February 25, 2026: 15% margin
  • February 26, 2026: 20% margin
  • February 27, 2026: 25% margin (expiry/delivery)

Impact Assessment

Market Impact: Medium - affects liquidity and position management for commodity futures traders approaching expiry. Traders holding positions into tender period need to plan for increased margin requirements.

Operational Impact: Trading members and clearing members must ensure systems are configured to collect escalating margins as per the published schedule. Clients holding delivery-intended positions must maintain adequate collateral.

Financial Impact: Increased margin requirements reduce available leverage and may require additional capital deployment for position holders during tender period. Progressive margin escalation provides advance notice for capital planning.

Impact Justification

Operational circular providing margin schedule for commodity futures during tender period; affects traders holding positions through delivery but is routine market operations information