MCX Circular on - Revision in Threshold Limits for Concentration Margin
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Date of Issue:10-7-2025
Issuer: MCX
Revision in Threshold Limits for Concentration Margin
Highlights of MCX Circular dated July-10-2025
In terms of the
provisions of the Rules, Bye-Laws and Regulations of the Multi Commodity
Exchange Clearing Corporation Limited (MCXCCL) and in modification to Circular
No. MCXCCL/RISK/115/2025 dated June 06, 2025 Clearing
Members of the MCXCCL are notified as under:
As a risk management measure, Commodities shall be eligible for concentration
margin as per the following conditions:
A. For Non-Agri Commodities:
Commodities shall be eligible for concentration margin if any one of the
following conditions is met
- The Open Interest Value of the commodity exceeds 5% of the Exchange Open Interest Value
- Threshold limits specified in Annexure-1
B. For
Agri Commodities:
Commodities shall be eligible for concentration margin if Open Interest exceeds
Threshold limits specified in Annexure-1
Further for New & Re-launched Commodity, the threshold Open Interest Value
of the commodity shall be subject to a minimum of “Rs.250 Crores” for Narrow
& Sensitive Commodities and Rs 500 Crores for Broad Commodities. These
minimum thresholds shall be applicable for 1 year from the date of launch of
contracts in new /re-launched commodity
Concentration margin shall be levied as under:
- Commodity wise threshold limits applicable for concentration margin is specified in Annexure 1.
- The applicable concentration margins at Client Level shall be as under:
- The applicable concentration margins at Clearing Member Level shall be as under:
- Additional points:
i. The concentration margins shall be calculated at the end of each day and shall be applicable for the next trading day till the End of Day and shall remain blocked from the available collateral deposits of the Member.
ii. Concentration margin shall be over and above all other margins as may be applicable.
iii. For Clients who have submitted documents for hedge limits and have been allocated Hedge Code, such positions in Hedge Code shall be excluded from levy of concentration margin.
iv. Client’s commodity level open interest shall be computed as netted position across contracts and variants.
v. In addition to client level concentration margins, Clearing Member level concentration margins shall also be applicable based on the defined slabs.
vi. Clearing Member’s commodity level open interest shall be computed as higher of summation of long or short positions of each TM-Client combination in the respective commodity grossed up at Clearing Member Level.
vii. Concentration margins shall be made applicable only to open positions in Futures Contracts.
viii. Following files shall be made available in Member’s SFTP download folder providing the extent of concentration margin blocked from the collateral deposits of Clearing Member.
a. For Clearing Member
1. Clearing Member ID_Conc_Margin_ddmmyyyy.xlsx
2. Clearing Member ID _Conc_Margin_CLI_ddmmyyyy.xlsx
b. For Trading Member
1. Trading Member ID_Conc_Margin_CLI_ddmmyyyy.xlsx
ix. As per the provisions of circular MCXCCL/C&S/051/2018 dated October 31, 2018, members shall be required to report collection of Concentration Margin from their clients for the purpose of Client Margin Reporting.
The provisions of this circular shall be applicable from begin of day on July 15, 2025. Members are requested to take note of the same.
In case of any clarification or assistance required in the implementation of this circular, you may contact
Kaushik Jethwa - kau...@secmark.in / 9870210171
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