NSE Clearing Limited has updated the volatility category for Brent Crude Oil (Platts), symbol BRCRUDEOIL, classifying it under the ‘High’ volatility category. This update sets the applicable minimum Initial Margin (IM) at 10% and the minimum Margin Period of Risk (MPOR) at 3, in continuation of circular no. 0125/2025 dated April 06, 2026, and pursuant to SEBI’s margin framework circular dated January 27, 2020.

Key Points

• Commodity symbol BRCRUDEOIL (Non-Agri) is classified under the High volatility category
• Applicable Minimum Initial Margin (IM): 10%
• Applicable Minimum Margin Period of Risk (MPOR): 3
• This is a continuation of circular no. 0125/2025 (Download Ref no NCL/COM/73616) dated April 06, 2026
• Issued under the SEBI circular SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 dated January 27, 2020 on the Review of Margin Framework for Commodity Derivatives Segment

Regulatory Changes

The volatility category for Brent Crude Oil (Platts) has been updated per the criteria specified in SEBI circular SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 (January 27, 2020). The reclassification to ‘High’ volatility triggers elevated margin parameters across the commodity derivatives segment for this commodity.

Compliance Requirements

• All members trading BRCRUDEOIL on the Commodity Derivatives Segment must take note of the updated volatility classification
• Members must ensure compliance with the revised minimum Initial Margin of 10% for BRCRUDEOIL positions
• Members must adhere to the minimum MPOR of 3 as applicable to the High volatility category
• Members should update their internal risk and margin systems accordingly

Important Dates

• Circular Date: April 09, 2026
• Reference Circular Date: April 06, 2026 (Circular no. 0125/2025, Ref NCL/COM/73616)
• Regulatory Basis: SEBI Circular dated January 27, 2020

Impact Assessment

The ‘High’ volatility classification for BRCRUDEOIL increases mandatory margin requirements for all members holding positions in Brent Crude Oil (Platts) futures/options on NSE. Members will need to maintain higher capital buffers to support existing or new positions, potentially reducing leverage and increasing cost of carry. This may impact trading volumes and open interest in BRCRUDEOIL contracts. The elevated MPOR of 3 further reflects the regulator’s assessment of heightened price risk in global crude oil markets, consistent with ongoing geopolitical and supply-side uncertainties.