Description

ICCL increases additional margins on Gold futures to 3% and Silver futures to 7% in a phased manner from February 5-6, 2026 as part of risk management measures.

Summary

Indian Clearing Corporation Limited (ICCL) has issued a modification to circular 20260128-2 announcing phased increases in additional margins for all variants of Gold and Silver futures contracts. The margins will be increased in two stages: February 5, 2026 (beginning of day) and February 6, 2026 (beginning of day). This measure is part of periodic review of risk management adequacy to mitigate systemic risk.

Key Points

  • Additional margin on Gold futures (all variants) increased to 1.00% effective February 5, 2026 (BOD)
  • Additional margin on Silver futures (all variants) increased to 4.50% effective February 5, 2026 (BOD)
  • Further increase to 3.00% for Gold futures effective February 6, 2026 (BOD)
  • Further increase to 7.00% for Silver futures effective February 6, 2026 (BOD)
  • Applies to all variants of Gold and Silver futures contracts
  • Circular modifies previous ICCL circular 20260128-2 dated January 2, 2026

Regulatory Changes

ICCL is implementing enhanced margin requirements as part of its authority under Rules, Bye-laws, and Regulations to conduct periodic reviews of risk management measures. The phased approach allows market participants time to adjust positions and capital allocation.

Compliance Requirements

  • All clearing members and participants must ensure adequate margin coverage for Gold and Silver futures positions
  • Members must adjust their capital and margin calculations to account for the increased requirements
  • Contact ICCL Risk Department (risk.monitoring@icclindia.com or +91-22-2272 5186/8902) for clarifications

Important Dates

  • February 5, 2026 (BOD): First phase - Gold 1.00%, Silver 4.50% additional margin
  • February 6, 2026 (BOD): Second phase - Gold 3.00%, Silver 7.00% additional margin

Impact Assessment

Capital Impact: Members holding Gold and Silver futures positions will need to allocate significantly higher margins - a 200% increase for Gold (from 1% to 3%) and 55% increase for Silver (from 4.5% to 7%) over the two-day period.

Trading Impact: Higher margin requirements may reduce leverage availability and could lead to position adjustments or liquidations if participants cannot meet the enhanced margin calls.

Market Impact: The phased implementation aims to minimize market disruption, but increased margins typically reduce trading volumes and volatility in affected contracts as participants reduce positions to manage capital efficiency.

Impact Justification

Significant margin increases on widely traded commodity contracts (Gold 1% to 3%, Silver 4.5% to 7%) will impact capital requirements and trading positions for all commodity derivative participants with immediate effect.