Description

ICCL modifies additional margin requirements for Gold and Silver contracts during tender period, continuing 4.5% margin for Silver and 1% for Gold variants.

Summary

Indian Clearing Corporation Limited (ICCL) has issued a modification to circular no. 20251125-3 dated November 3, 2025, regarding additional margin requirements for Gold and Silver commodity derivatives. The circular confirms continuation of additional margins during the tender period for various Gold and Silver contracts expiring in January and February 2026.

Key Points

  • Additional margin of 4.5% continues for Silver variants (SILVERKG, SILVERM, SILVER) during tender period
  • Additional margin of 1% continues for Gold variants (GOLD, GOLDM) during tender period
  • Measure is part of periodic review of risk management adequacy
  • Aims to mitigate systemic risk in commodity derivatives segment
  • Modification of earlier circular dated November 3, 2025

Regulatory Changes

This circular modifies ICCL circular no. 20251125-3 dated November 3, 2025. The additional margin requirements are being continued as part of ICCL’s periodic review of risk management measures in accordance with the Rules, Bye-laws, and Regulations of the Indian Clearing Corporation Limited.

Compliance Requirements

  • Members and participants must maintain additional margins on specified Gold and Silver contracts during tender period
  • Silver contracts (SILVERKG expiring Jan 30, SILVERM expiring Jan 30, SILVER expiring Feb 5): Additional margin of 4.5%
  • Gold contracts (GOLD expiring Feb 5, GOLDM expiring Feb 5): Additional margin of 1%
  • Members must ensure adequate collateral to meet these margin requirements

Important Dates

  • Circular Date: January 28, 2026
  • SILVERKG Expiry: January 30, 2026
  • SILVERM Expiry: January 30, 2026
  • SILVER Expiry: February 5, 2026
  • GOLD Expiry: February 5, 2026
  • GOLDM Expiry: February 5, 2026
  • Additional margins applicable during tender period for these contracts

Impact Assessment

Market Impact: Members trading in Gold and Silver commodity derivatives must maintain higher margins during the tender period, which may impact liquidity and trading positions. The continuation of these margins indicates ongoing volatility concerns in precious metals markets.

Operational Impact: Clearing members need to ensure adequate collateral is available to meet the additional margin requirements of 4.5% for Silver and 1% for Gold contracts. This affects capital allocation and risk management strategies for participants in commodity derivatives segment.

Risk Management: The measure aims to mitigate systemic risk in the commodity derivatives market, particularly for precious metals during delivery/tender periods when price volatility may be heightened.

Impact Justification

Continues existing additional margin requirements for Gold and Silver derivatives during tender period as part of risk management measures, affecting commodity traders.