MCX Circular: Modification in Staggered Delivery Period for Commodity Futures (Precious Metals)

Market Announcements 📢
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MCX has announced a change in the Staggered Delivery Tender Period for futures contracts under the Precious Metals category (like Gold and Silver).

MCX Circular
MCX Circular1084×448 63.8 KB

Item Earlier New (Effective now)
Staggered Delivery Tender Period 5 days 3 days

This change is in line with the SEBI circular dated May 24, 2024, regarding “Modification in Staggered Delivery Period in Commodity Futures Contracts.”

What is Staggered Delivery Tender Period?

This is the window before expiry when sellers of futures contracts can start expressing intent to deliver the physical commodity — and buyers must be prepared to take delivery.

Shortening this period means:

  • Less time exposure to delivery risk
  • Lower funding & warehousing uncertainty for participants
  • Smoother expiry week with reduced volatility caused by forced square-offs

Impact on Traders / Community Members

For intraday & positional traders:

  • No impact on day-to-day trading.
  • But near expiry, liquidity may thin out faster because the delivery window begins earlier.

For traders carrying positions into expiry:

  • Be aware of the shortened delivery cycle — the exchange can mark your position for delivery sooner.
  • Margins can increase sharply during this delivery period.

For hedgers & bullion players:

  • Faster physical settlement cycle — good for those looking to take/give delivery.

Delivery & Contract Key Details (from annexures)

For Gold (standard & mini) contracts:

  • Last trading day: 5th of the expiry month
  • Delivery allowed at:
    • Ahmedabad (Primary)
    • New Delhi & Mumbai (additional delivery centers)
  • Delivery unit: 1 kg for GOLD, 8 grams for GOLD Mini
  • Margins during delivery period:
    Higher of:
    • (3% + 5-day VaR) OR
    • 25% margin applied during delivery period

Reference:
MCX: Modification in Staggered Delivery Period in Commodity Futures Contracts

SEBI circular SEBI/HO/MRD/MRD-PoD-1/P/CIR/2024/57 dated May 24, 2024.

1 Like
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I didn’t get this. Tender period is reduced from 5 to 3 days. So Expiry risks kick in two days later than the previous 5 day tender period. Am I missing something :thinking:

Also I guess Dhan like most other brokers don’t allow physical settlement. Positions are auto squared off by RMS team. Please correct me if am wrong.

1 Like
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I have revisited and removed the whole part and kept it as it is for better clarity.

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Hi @t7support

The real advantage for retail trader here is that they have 2 extra days of trading. Dhan RMS Policy (and almost every other broker), doesn’t allow retail traders to trade in tender/staggared delivery period.

2 Likes
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@Naman @t7support ,

In that case, for commodity contracts shouldn’t Dhan display tender period start date on the user interface (like expiry date) which really matters?

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We can mentally calculate - Currently E-5 and going to be E-3. Also Dhan sends notifications warning of forced square off. But yes I think if Dhan can show tender period date it will be useful.

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And, then check the date agaist weekend or trading holidays? :sweat_smile:

They start sending mail notification 15 days before without mentioning the exact date. :joy:

I think the best would be to keep such important information one click away from trader to self check just like any other information.

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yes extra effort is there :rofl:

Yes this should be corrected by Dhan

:+1: