Description

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

Summary

ICCL has issued a modification to circular no. 20251125-3 dated November 3, 2025, continuing additional margin requirements on Gold and Silver commodity derivatives contracts during their respective tender periods. The additional margin of 4.5% continues for Silver variants and 1% for Gold variants as part of periodic risk management review to mitigate systemic risk.

Key Points

  • Additional margins will continue to be levied during tender periods for specified contracts
  • Silver contracts (SILVERKG, SILVERM, SILVER) expiring January 30 and February 5, 2026: 4.5% additional margin
  • Gold contracts (GOLD, GOLDM) expiring February 5, 2026: 1% additional margin
  • This is a modification of previous circular dated November 3, 2025
  • Measure implemented as part of periodic review of risk management adequacy

Regulatory Changes

No new regulatory changes introduced. This circular modifies and continues the additional margin framework previously established in ICCL circular no. 20251125-3 dated November 3, 2025.

Compliance Requirements

  • Clearing Members and Participants must ensure additional margins are maintained for affected contracts
  • Members must account for 4.5% additional margin on Silver variants during tender period
  • Members must account for 1% additional margin on Gold variants during tender period
  • Compliance required in accordance with ICCL Rules, Bye-laws, and Regulations

Important Dates

  • Notice Date: January 28, 2026
  • SILVERKG Expiry: January 30, 2026 (4.5% additional margin during tender period)
  • SILVERM Expiry: January 30, 2026 (4.5% additional margin during tender period)
  • SILVER Expiry: February 5, 2026 (4.5% additional margin during tender period)
  • GOLD Expiry: February 5, 2026 (1% additional margin during tender period)
  • GOLDM Expiry: February 5, 2026 (1% additional margin during tender period)

Impact Assessment

Market Impact: Moderate impact on commodity derivatives market participants trading Gold and Silver contracts. The continuation of additional margins affects liquidity and capital requirements for positions held during tender periods.

Operational Impact: Members must ensure adequate margin funding for positions in affected contracts. The differential margin rates (4.5% for Silver vs 1% for Gold) reflect different risk profiles of these precious metals.

Risk Management: This measure is designed to mitigate systemic risk during tender periods when physical delivery obligations crystallize, protecting the clearing system from default risk during critical settlement phases.

Impact Justification

Continues existing additional margin requirements for precious metals during tender period as risk management measure, affecting commodity derivatives traders