The Multi-Commodity Exchange Clearing Corporation Limited (MCX) on May 12, 2026, notified regarding the revised Framework for Levy of Concentration Margin on Commodity and Index Option Positions.
The following has been stated:
• It states that under the revised framework, non-agri commodities will attract concentration margin if the commodity open interest value exceeds 5% of exchange-wide open interest or crosses prescribed threshold limits, while agri commodities will become eligible based on threshold open interest levels specified by MCXCCL. Newly launched or re-launched commodities will be subject to minimum threshold open interest values of ₹250 crore for narrow and sensitive commodities and ₹500 crore for broad commodities for one year from launch. Index options will attract concentration margin if the open interest exceeds 5% of the exchange-wide futures and options open interest.
• The circular prescribes slab-wise concentration margins at both client and clearing member levels, with higher margins applicable for larger concentration exposures and for narrow/sensitive commodities such as Mentha Oil and Cardamom.
• Margins will be calculated daily and blocked from members’ collateral deposits for the next trading day, over and above other applicable margins. Hedge positions approved under hedge codes will be exempted from the concentration margin levy.
• The revised provisions will come into effect from the beginning of trading on May 15, 2026.
[Notification no. - MCX/MCXCCL/277/2026]
