Multiple banks raise margin requirements for individual clients' futures contract extensions

Financial Reporter Yang Jie

Recently, the precious metals market has seen a significant increase in risk, with several state-owned banks issuing notices to adjust the margin requirements for deferred contracts on the Shanghai Gold Exchange for individual clients.

The margin requirement for deferred contracts refers to the amount of collateral investors must deposit at a certain ratio in precious metals trading. When investors engage in deferred trading, they need to pay a specified margin as a guarantee to ensure they can fulfill their obligations during the transaction. If the margin ratio is insufficient to cover losses, investors are required to add more funds.

Specifically, on February 24, Bank of China announced adjustments to the margin requirements and price fluctuation limits for agency personal trading on the Shanghai Gold Exchange, including silver and gold deferred contracts.

On February 25, Agricultural Bank of China announced that starting from the close settlement on Thursday, February 26, 2026, the margin ratio for Au (T+D), mAu (T+D), and Ag (T+D) contracts would be increased from 80% to 100%.

Industrial and Commercial Bank of China (ICBC) also announced on February 25 that it would adjust the margin requirements for agency personal deferred contracts. Starting from the close settlement on Friday, February 27, 2026, the standard margin ratio for ICBC’s agency personal clients’ Au (T+D), mAu (T+D), Au (T+N1), Au (T+N2), NYAuTN06, NYAuTN12, and other contracts would be increased from 80% to 100%, with differential margins adjusted proportionally in the same direction. The margin ratio for Ag (T+D) contracts would also be raised from 80% to 100%, with similar proportional adjustments.

Previously, on January 27, ICBC issued a notice to adjust the margin ratio for agency personal clients’ deferred contracts on the Shanghai Gold Exchange, directly increasing it to 100%.

Regarding this adjustment, ICBC’s official customer service told reporters: “Recently, domestic and international precious metals prices have been highly volatile. To effectively prevent market risk and protect investors’ interests, our bank has implemented this adjustment based on risk control requirements. This also aligns with the relevant department’s policies on agency personal precious metals business. We recommend that investors take advantage of current fee reductions to manage their positions prudently according to their risk tolerance, through closing positions to mitigate market uncertainties.”

The ICBC customer service explained that increasing the margin ratio reduces leverage in trading. For example, previously, a contract valued at 1 million yuan required 800,000 yuan in margin; after the increase to 100%, the full 1 million yuan margin is required.

Tian Lihui, a finance professor at Nankai University, stated that currently, international gold prices are at historically high levels, deeply embedded in complex global expectations of “re-inflation,” geopolitical risk premiums, and the revaluation of the US dollar’s credit. Banks, as market makers and agents, are increasing margins to provide necessary risk buffers. This move aims to curb potential speculative bubbles by raising trading costs and reducing leverage.

(Edited by Qian Xiaorui)

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