Description

ICCL increases additional margin requirements for Gold and Silver futures contracts in two phases starting February 5, 2026, with Silver margins reaching 7% and Gold margins reaching 3%.

Summary

The Indian Clearing Corporation Limited (ICCL) has issued a modification to circular 20260128-2, implementing increased additional margin requirements for all variants of Gold and Silver futures contracts. This is part of a periodic review of risk management measures to mitigate systemic risk. The margin increases will be implemented in two phases: February 5, 2026 and February 6, 2026.

Key Points

  • Additional margin on Silver futures (all variants) set at 4.50% effective February 5, 2026 (Beginning of Day)
  • Additional margin on Gold futures (all variants) set at 1.00% effective February 5, 2026 (Beginning of Day)
  • Further increase of 2.50% on Silver futures taking total to 7.00% effective February 6, 2026 (Beginning of Day)
  • Further increase of 2.00% on Gold futures taking total to 3.00% effective February 6, 2026 (Beginning of Day)
  • Applies to all clearing members and participants in commodity derivatives segment
  • Modification of previous circular dated January 2, 2026

Regulatory Changes

ICCL is implementing phased increases in additional margin requirements:

Phase 1 - February 5, 2026 (BOD):

  • Gold futures (all variants): 1.00% additional margin
  • Silver futures (all variants): 4.50% additional margin

Phase 2 - February 6, 2026 (BOD):

  • Gold futures (all variants): 3.00% additional margin (increase of 2.00%)
  • Silver futures (all variants): 7.00% additional margin (increase of 2.50%)

Compliance Requirements

  • All members and participants trading in Gold and Silver futures contracts must ensure adequate margin coverage
  • Members must adjust their capital and margin requirements to accommodate the increased margins
  • Trading members need to ensure client positions are adequately margined as per the new requirements
  • Compliance is mandatory from the beginning of day on specified dates

Important Dates

  • February 5, 2026 (BOD): First phase of margin increase takes effect - Gold 1.00%, Silver 4.50%
  • February 6, 2026 (BOD): Second phase of margin increase takes effect - Gold 3.00%, Silver 7.00%
  • Reference circular: ICCL circular no. 20260128-2 dated January 2, 2026

Impact Assessment

Market Impact:

  • Significant increase in capital requirements for traders holding Gold and Silver futures positions
  • Silver futures face the highest impact with a 7.00% additional margin requirement
  • May lead to position adjustments or closures by traders with limited capital
  • Reduced leverage available for commodity futures trading

Operational Impact:

  • Clearing members must ensure systems are updated to reflect new margin requirements
  • Risk management teams need to monitor margin adequacy more closely
  • Potential liquidity impact as traders adjust positions to meet higher margin calls
  • Systematic risk mitigation through enhanced margin coverage

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

Impact Justification

Significant increase in margin requirements for Gold and Silver futures will directly impact trading capital requirements and positions for all commodity derivatives market participants