Description
NSE Clearing imposes additional margins ranging from 1.00% to 4.50% on all variants of Gold and Silver futures contracts as a risk containment measure, with varying expiry dates and cessation conditions.
Summary
NSE Clearing Limited has imposed additional margins on all variants of Gold and Silver futures contracts as a risk containment measure. Silver futures will attract an additional margin of 4.50%, while Gold futures will have an additional margin of 1.00%. These margins apply to various expiry dates, with some set to cease from October 30, 2025, and others continuing into November and December 2025. The additional margin will cease when contracts enter their tender period and will be applied to the next subsequent expiring contracts.
Key Points
- Additional margin of 4.50% imposed on Silver futures (SILVER, SILVERM, SILVERMIC) for various expiry dates
- Additional margin of 1.00% imposed on Gold futures (GOLD, GOLD1G, GOLDGUINEA, GOLDM) for various expiry dates
- Circular issued in continuation to previous circular no. 0333/2025 dated October 22, 2025
- Measure implemented under Point 7.15 of consolidated circular no. 0123/2025 dated April 30, 2025
- Additional margins will cease when contracts enter tender period and shift to next expiring contracts
Regulatory Changes
This circular modifies margin requirements for commodity derivatives trading by imposing additional margins as follows:
Silver Futures (4.50% Additional Margin):
- SILVER (05-12-2025)
- SILVERM (31-10-2025) - ceases from BOD October 30, 2025
- SILVERM (28-11-2025)
- SILVERMIC (31-10-2025) - ceases from BOD October 30, 2025
- SILVERMIC (28-11-2025)
Gold Futures (1.00% Additional Margin):
- GOLD (04-11-2025) - ceases from BOD October 30, 2025
- GOLD (05-12-2025)
- GOLD1G (04-11-2025) - ceases from BOD October 30, 2025
- GOLD1G (05-12-2025)
- GOLDGUINEA (31-10-2025) - ceases from BOD October 30, 2025
- GOLDGUINEA (28-11-2025)
- GOLDM (04-11-2025) - ceases from BOD October 30, 2025
- GOLDM (05-12-2025) - levied from BOD October 30, 2025
Compliance Requirements
- All members must ensure adequate margin coverage for the specified Gold and Silver futures contracts
- Members must collect the additional margins from their clients for affected positions
- Members should update their risk management systems to reflect the new margin requirements
- Members must monitor the cessation dates for additional margins on specific contract expiries
- Contact risk operations at risk_ops@nsccl.co.in or call 1800 266 0050 (IVR option 2) for queries
Important Dates
- October 29, 2025: Circular issue date (Circular Ref. No: 0344/2025)
- October 30, 2025 (BOD): Additional margin ceases for multiple contracts including SILVERM (31-10-2025), SILVERMIC (31-10-2025), GOLD (04-11-2025), GOLD1G (04-11-2025), GOLDGUINEA (31-10-2025), and GOLDM (04-11-2025)
- October 30, 2025 (BOD): Additional margin begins for GOLDM (05-12-2025)
- Ongoing: Additional margins continue for December 2025 and November 2025 expiries until contracts enter tender period
Impact Assessment
Market Impact:
- Increased capital requirements for traders holding positions in Gold and Silver futures contracts
- Higher trading costs due to additional margin obligations
- Potential reduction in open interest as marginal participants may exit positions
- Market liquidity may be affected as additional margins increase the cost of maintaining positions
Operational Impact:
- Trading members must ensure sufficient collateral availability to meet enhanced margin requirements
- Risk management systems need immediate updates to incorporate new margin calculations
- Client communication required regarding increased margin obligations
- Clearing members must monitor and manage heightened capital deployment in commodity derivatives segment
Risk Management:
- These measures aim to contain systemic risk in precious metals futures amid market volatility
- Additional margins provide enhanced protection against potential default scenarios
- The staggered cessation approach allows for dynamic risk management across different contract expiries
Impact Justification
Significant additional margin requirements (up to 4.50%) on precious metal futures will materially impact capital requirements and trading costs for all market participants in commodity derivatives segment