Description

ICCL increases additional margin on Gold futures to 1-3% and Silver futures to 4.5-7% effective February 5-6, 2026 as part of risk management measures.

Summary

Indian Clearing Corporation Limited (ICCL) has issued a modification to circular 20260128-2, implementing additional margin requirements on all variants of Gold and Silver futures contracts. The additional margins will be applied in two phases: an initial increase effective February 5, 2026 (beginning of day), followed by a further increase on February 6, 2026 (beginning of day). This action is part of ICCL’s periodic review of risk management measures to mitigate systemic risk in the commodity derivatives segment.

Key Points

  • Additional margin of 1.00% imposed on Gold futures (all variants) effective February 5, 2026 BOD
  • Additional margin of 4.50% imposed on Silver futures (all variants) effective February 5, 2026 BOD
  • Gold futures additional margin increased to 3.00% (total) effective February 6, 2026 BOD
  • Silver futures additional margin increased to 7.00% (total) effective February 6, 2026 BOD
  • Applies to all clearing members and participants in commodity derivatives segment
  • Modifies earlier circular no. 20260128-2 dated January 2, 2026

Regulatory Changes

ICCL is implementing a phased margin increase as part of its risk management framework:

Phase 1 - February 5, 2026 (BOD):

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

Phase 2 - February 6, 2026 (BOD):

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

These margins are imposed in accordance with the Rules, Bye-laws, and Regulations of ICCL.

Compliance Requirements

  • All clearing members and participants must ensure adequate margin funds are available to meet the increased requirements
  • Members must account for the phased implementation with different margin levels on February 5 and February 6, 2026
  • Members should update their risk management systems and client communication to reflect the new margin structure
  • Compliance is mandatory for all Gold and Silver futures contracts across all variants

Important Dates

  • February 5, 2026 (BOD): Initial additional margin implemented - Gold 1.00%, Silver 4.50%
  • February 6, 2026 (BOD): Enhanced additional margin implemented - Gold 3.00%, Silver 7.00%
  • Reference Date: January 2, 2026 - Original circular no. 20260128-2 being modified

Impact Assessment

Capital Requirements: Members trading in gold and silver futures will need to allocate significantly higher margins, particularly for silver positions where the margin increases by 7%. This will impact working capital requirements and position sizing.

Trading Costs: The margin increase effectively raises the cost of maintaining futures positions, which may lead to reduced leverage and altered trading strategies.

Market Liquidity: Higher margin requirements could potentially reduce market participation and liquidity in gold and silver futures as traders face increased capital constraints.

Risk Mitigation: The phased approach allows members time to adjust positions and arrange additional capital while achieving ICCL’s objective of reducing systemic risk exposure in precious metals derivatives.

Contact Information: Members requiring clarification should contact ICCL Risk Department at risk.monitoring@icclindia.com or +91-22-2272 5186/8902.

Impact Justification

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