Description

NSE Clearing imposes additional margins of up to 7% on Silver futures and 3% on Gold futures effective February 5-6, 2026 as a risk containment measure.

Summary

NSE Clearing Limited has announced the imposition of additional margins on Silver and Gold futures contracts (all variants) as a risk containment measure. The margins will be implemented in two phases: an initial increase effective February 5, 2026, followed by further increases on February 6, 2026. This circular references consolidated circular 0123/2025 (Point 7.15) as the authority for this action.

Key Points

  • Additional margin of 4.5% on Silver futures (all variants) from February 5, 2026 (Begin of Day)
  • Additional margin of 1% on Gold futures (all variants) from February 5, 2026 (Begin of Day)
  • Further additional margin of 2.5% on Silver futures from February 6, 2026 (Begin of Day)
  • Further additional margin of 2% on Gold futures from February 6, 2026 (Begin of Day)
  • Total cumulative additional margin: 7% for Silver, 3% for Gold
  • Applies to all contract variants of Silver and Gold futures
  • Implemented as a risk containment measure

Regulatory Changes

This circular implements phased additional margin requirements pursuant to Point 7.15 of consolidated circular no 0123/2025 (Download reference no. NCL/COM/67788) dated April 30, 2025. The margins are being levied as a regulatory risk management tool in response to market conditions.

Compliance Requirements

  • All members trading Silver and Gold futures must ensure adequate margin funds are available from February 5, 2026
  • Members must factor in the increased margin requirements for position management
  • Members should inform their clients about the increased margin obligations
  • Contact risk operations at risk_ops@nsccl.co.in or call 1800 266 0050 (IVR option 2) for queries

Important Dates

  • February 4, 2026: Circular issued
  • February 5, 2026 (Begin of Day): First phase margins effective - Silver +4.5%, Gold +1%
  • February 6, 2026 (Begin of Day): Second phase margins effective - Silver +2.5% more (total 7%), Gold +2% more (total 3%)

Impact Assessment

Market Impact: The substantial increase in margin requirements will significantly increase the capital required to maintain positions in Silver and Gold futures. Silver traders will face a 7% additional margin burden while Gold traders will see 3% additional margins.

Trading Impact: Higher margins may lead to position squaring by traders with limited capital, potentially increasing volatility during the implementation period. The phased approach gives members two days to adjust positions and arrange for additional funds.

Operational Impact: Members must ensure their risk management systems and client communication processes account for these changes. Increased margin calls are expected, requiring enhanced operational readiness for margin collection and position monitoring.

Impact Justification

Significant margin increases (7% for Silver, 3% for Gold) will directly impact trading costs and position management for all commodity derivatives members trading these contracts.