The Multi-Commodity Exchange Clearing Corporation Limited (MCXCCL) on November 10, 2025, issued a notification regarding a revision in threshold limits for concentration margin.
The following has been stated:
The changes aim to strengthen risk management by ensuring adequate margins when open interest (OI) in specific commodities or indices becomes highly concentrated. For Non-Agri Commodities, concentration margin will apply if the open interest value exceeds 5% of total Exchange OI or crosses the prescribed thresholds in Annexure-1. For Agri Commodities, it will apply once the OI exceeds the limits specified in the same annexure. In the case of new or re-launched commodities, minimum OI thresholds are fixed at ₹250 crores for narrow and sensitive commodities and ₹500 crore for broad commodities for one year from launch. For Options on Index, the margin will be applicable if the total OI (Futures + Options) exceeds 5% of Exchange-wide OI.
A t the client level, the concentration margin ranges from 1% to 10%, depending on the percentage of client OI to total Exchange OI and the category of the commodity. For index options, the margin starts at 1% for 5–10% OI and increases up to 4% for OI above 25%. At the clearing member level, the applicable concentration margin starts at 1% for 10–15% OI and rises to 5% for OI above 30%. Margins are calculated daily, remain blocked until the end of the next trading day, and are over and above other applicable margins. However, hedged positions with an approved hedge code are exempted from this levy. Members must also report the collection of concentration margins from their clients in line with the reporting framework prescribed under previous circulars. These measures ensure better monitoring of concentrated positions and enhance market stability.
The provisions of this circular shall be applicable from begin of day on November 14, 2025.
Please refer to the document attached below for Annexures and more details.
[MCXCCL Circular No. MCXCCL/RISK/251/2025]
