The Bombay Stock Exchange (BSE) on March 10, 2026, issued the notification on Review of Margin Framework for Commodity Derivatives Segment.
The following has been stated namely: -
• Based on volatility classification, Brent Crude, WTI Crude, and Silver are categorized as High Volatility, while Gold is categorized as Medium Volatility, with specified minimum Initial Margin (IM), Short Option Minimum Margin (SOMM), MPOR, and Volatility Scan Range (VSR).
• As per the lead exchange’s revised framework, Brent Crude and WTI Crude margins are increased to 33% (IM, SOMM, and VSR), while Silver margins are set at 11.5% IM/SOMM and 6% VSR.
• For options contracts, the Margin Period of Risk (MPOR) must be at least two days or equal to the MPOR of corresponding futures contracts, and the seller’s margin will be the higher of SOMM or VaR scaled by MPOR.
• Other margins such as Extreme Loss Margin, Tender Period Margin, Delivery Period Margin, Concentration Margin, Additional Margin, Lean Period Margin, and Special Margin will continue unchanged, and the provisions come into effect from April 01, 2026.
[Notification No. 20260310-8]
