Description

Continuation of additional margin levies during tender period for gold and silver contracts expiring in January and February 2026.

Summary

Indian Clearing Corporation Limited (ICCL) has issued a modification to its earlier circular regarding additional margins on gold and silver commodity derivatives. The circular confirms continuation of additional margin levies during the tender period for specific contracts expiring in January and February 2026. This is part of periodic review of risk management measures to mitigate systemic risk.

Key Points

  • Additional margin of 4.5% continues to be levied on silver contracts (SILVERKG, SILVERM, SILVER) during tender period
  • Additional margin of 1% continues to be levied on gold contracts (GOLD, GOLDM) during tender period
  • Modifies earlier ICCL circular no. 20251125-3 dated November 3, 2025
  • Applies to all members and participants in commodity derivatives segment
  • Part of periodic review of risk management adequacy

Regulatory Changes

This circular modifies the previous circular dated November 3, 2025 (ICCL circular no. 20251125-3). The additional margins that were imposed earlier will continue to be levied during the tender period for the specified contracts.

Compliance Requirements

  • All clearing members and participants must ensure adequate margin coverage during tender period
  • Members must maintain additional margin of 4.5% for silver contracts (SILVERKG expiring Jan 30, 2026; SILVERM expiring Jan 30, 2026; SILVER expiring Feb 5, 2026)
  • Members must maintain additional margin of 1% for gold contracts (GOLD expiring Feb 5, 2026; GOLDM expiring Feb 5, 2026)
  • Margins are in addition to regular margin requirements

Important Dates

  • January 30, 2026: Expiry date for SILVERKG and SILVERM contracts (4.5% additional margin during tender period)
  • February 5, 2026: Expiry date for SILVER, GOLD, and GOLDM contracts (4.5% for silver, 1% for gold during tender period)
  • Circular Date: January 28, 2026

Impact Assessment

Market Impact: Traders and clearing members dealing in gold and silver commodity derivatives will continue to face higher margin requirements during the tender period. This may reduce leverage available to market participants and could impact trading volumes.

Operational Impact: Clearing members need to ensure sufficient collateral and funding arrangements to meet the enhanced margin requirements during tender periods for these contracts.

Risk Management: The continuation of additional margins demonstrates ICCL’s proactive approach to managing systemic risk in precious metals derivatives, particularly during the volatile tender period when physical delivery obligations materialize.

Impact Justification

Affects commodity derivatives traders in gold and silver during tender periods with continued additional margin requirements for risk mitigation