Description

NSE Clearing revises Minimum Initial Margin and Short Option Minimum Margin for Gold and Silver contracts effective October 14, 2025 as a risk containment measure.

Summary

NSE Clearing Limited has revised the Minimum Initial Margin (IM) and Short Option Minimum Margin (SOMM) for Gold and Silver contracts across all variants. This circular modifies the previous requirements set in circular 0274/2025 dated September 05, 2025. The revised margins represent a risk containment measure with Gold margins set at 7% and Silver margins at 11.50%.

Key Points

  • Gold contracts (all variants): Minimum IM increased to 7%, SOMM at 7%
  • Silver contracts (all variants): Minimum IM increased to 11.50%, SOMM at 11.50%
  • Gold: Minimum MPOR set at 2 days, Minimum VSR at 4%
  • Silver: Minimum MPOR set at 3 days, Minimum VSR at 6%
  • Minimum IM percentages shall not be scaled up by MPOR
  • For options on goods, MPOR shall be at least 3 days or MPOR of corresponding futures contracts, whichever is higher
  • Circular reference: 0326/2025 (Download Ref No: NCL/COM/70754)

Regulatory Changes

This circular modifies the margin requirements previously established in circular reference 0274/2025 (NCL/COM/70068) dated September 05, 2025. The new margin structure implements higher initial margin and short option minimum margin percentages as a risk containment measure in the commodity derivatives segment.

Compliance Requirements

  • All members must ensure compliance with the revised margin requirements
  • Members must implement the new Minimum Initial Margin of 7% for Gold contracts and 11.50% for Silver contracts
  • Short Option Minimum Margin (SOMM) must be maintained at 7% for Gold and 11.50% for Silver
  • Members must apply the specified MPOR (Minimum Period of Risk) and VSR (Volatility Scan Range) parameters
  • Contact risk operations at risk_ops@nsccl.co.in or call 1800 266 0050 (IVR option 2) for queries

Important Dates

  • Circular Issue Date: October 13, 2025
  • Effective Date: October 14, 2025
  • Previous Circular Date: September 05, 2025 (being modified)

Impact Assessment

The revision represents a significant tightening of margin requirements for precious metals trading. Market participants trading Gold and Silver contracts will need to maintain higher capital requirements, potentially affecting trading volumes and liquidity. The increase in margins, particularly the 11.50% requirement for Silver, reflects heightened risk concerns in precious metals markets. Traders and clearing members should prepare for increased margin calls and ensure adequate funding arrangements are in place before the October 14, 2025 implementation date.

Impact Justification

Significant increase in margin requirements for gold and silver contracts affects all market participants trading these commodities, with immediate effect from next day