The Multi Commodity Exchange Clearing Corporation Limited (MCX) on January 07, 2026, issued the notification regarding the Revision in Threshold Limits for Concentration Margin.
The following has been stated namely: -
• Concentration margin is introduced as a risk management measure for commodities and index options based on open interest (OI) concentration.
• Non-Agri Commodities are eligible for concentration margin if either the commodity OI exceeds 5% of exchange-wide OI or breaches threshold limits in Annexure-1.
• Agri Commodities become eligible for concentration margin only when OI exceeds the threshold limits specified in Annexure-1.
• For new or re-launched commodities, minimum OI thresholds apply for one year: ₹250 crore for Narrow and Sensitive commodities and ₹500 crore for Broad commodities.
• Index Options attract concentration margin if index OI (Futures + Options) exceeds 5% of exchange-wide OI, applicable only at client level.
• Client-level concentration margins are levied in slabs based on client OI vs exchange OI, with different rates for Annexure-2A, Annexure-2B, and Narrow & Sensitive commodities.
• Clearing Member-level concentration margins apply to all commodities when member OI exceeds 10% of exchange OI, increasing up to 5% beyond 30%.
• Concentration margins are calculated daily, applicable for the next trading day, blocked from collateral, over and above other margins, and hedge positions are excluded.
• Margin details will be provided via SFTP files, collection must be reported under client margin reporting norms.
The circular is effective from January 15, 2026.
[Notification No. MCX/MCXCCL/011/2026]
