Description

ICCL increases additional margins on gold futures to 1-3% and silver futures to 4.5-7% effective February 5-6, 2026 as part of periodic risk management review.

Summary

Indian Clearing Corporation Limited (ICCL) has announced immediate increases in additional margins for all variants of gold and silver futures contracts. This circular modifies the previous ICCL circular no. 20260128-2 dated January 2, 2026. The margin increases are being implemented in two phases as part of periodic risk management review to mitigate systemic risk in commodity derivatives.

Key Points

  • Additional margin on gold futures (all variants) set at 1.00% effective February 5, 2026 (beginning of day)
  • Additional margin on silver futures (all variants) set at 4.50% effective February 5, 2026 (beginning of day)
  • Gold futures additional margin will increase to 3.00% effective February 6, 2026 (beginning of day)
  • Silver futures additional margin will increase to 7.00% effective February 6, 2026 (beginning of day)
  • Changes apply to all variants of gold and silver futures contracts
  • Implementation is in accordance with ICCL Rules, Bye-laws, and Regulations

Regulatory Changes

This circular represents a modification to ICCL circular no. 20260128-2 dated January 2, 2026. The changes are implemented under ICCL’s regulatory framework for risk management in the commodity derivatives segment. The phased margin increases reflect enhanced risk mitigation measures for precious metals futures trading.

Compliance Requirements

  • All clearing members and participants must comply with the new margin requirements
  • Members must ensure adequate margin coverage for gold futures positions at 1% from February 5, 2026 (BOD) and 3% from February 6, 2026 (BOD)
  • Members must ensure adequate margin coverage for silver futures positions at 4.5% from February 5, 2026 (BOD) and 7% from February 6, 2026 (BOD)
  • Capital allocation and collateral management systems should be updated to reflect the new margin structure

Important Dates

  • February 5, 2026 (Beginning of Day): Initial margin increase takes effect - Gold 1.00%, Silver 4.50%
  • February 6, 2026 (Beginning of Day): Second phase margin increase - Gold 3.00%, Silver 7.00%

Impact Assessment

Market Impact: The substantial margin increases, particularly the 7% additional margin on silver futures (up from 4.5% in just one day), will significantly affect trading dynamics in precious metals futures. Traders will need to allocate more capital for the same position sizes, potentially reducing leverage and overall market liquidity.

Operational Impact: Clearing members must immediately adjust their risk management systems, margin collection processes, and client communication regarding increased capital requirements. The two-phase implementation provides limited time for adjustment, with the most significant increases occurring within 24 hours.

Financial Impact: Position holders will face increased margin calls and capital requirements. This may force position reductions or require additional collateral deposits. The 200-250 basis point increase in gold and silver margins represents a meaningful increase in the cost of carry for futures positions.

Contact: Risk Department - risk.monitoring@icclindia.com, +91-22-2272 5186/8902

Impact Justification

Significant margin increases on major commodity contracts (up to 7% on silver) will directly impact capital requirements and trading costs for all gold and silver futures market participants, effective immediately.