On July 8, Industrial and Commercial Bank of China announced an adjustment to the margin ratios for its agency individual precious metals trading. Effective from the close and settlement on Thursday, July 9, 2026, the standard trading margin ratio for deferred contracts such as Au(T+D), mAu(T+D), and Ag(T+D) for the bank's agency individual clients will be increased from 140% to 190%.

The forced liquidation margin ratio will also be raised simultaneously, from the previous 120% to 170%. This means that the margin in an investor's account must now be maintained above 170% of the total position value to avoid forced liquidation. Compared to the previous 120% threshold, this new forced liquidation line effectively moves the trigger point higher, providing a broader buffer to respond to sharp market price fluctuations.

This adjustment directly impacts individual investors participating in precious metals deferred trading. In the T+D trading model, the margin system is a core mechanism, the essence of which is to allow for leveraged trading operations. Raising the standard trading margin ratio means investors need to commit more capital to establish or hold the same quantity of precious metals contracts.

It is noteworthy that when the margin ratio exceeds 100%, the leverage effect of the trade essentially disappears. A ratio of 190% implies leverage has been reduced to approximately 0.53 times, effectively entering an over-margin mode, which objectively and significantly lowers the leverage ratio of the trades.

The increase in the forced liquidation margin ratio alters the trigger point for risk control. When market price movements cause the equity in an investor's account to fall and touch the new 170% forced liquidation line, the bank will initiate forced liquidation measures. This helps prevent investors from incurring losses exceeding their principal capital during one-sided market movements.

ICBC's adjustment of margin ratios has a clear market context. Recent price volatility in international precious metals markets has become evident, with intraday swings in gold and silver testing high-leverage trading. Previously, the bank had already raised margin ratios once in February 2026; this marks the second adjustment within the year and is of a larger magnitude.

Individual investors are typically at a relative disadvantage in terms of information access and risk-bearing capacity. During periods of increased price volatility, maintaining lower margin ratios could amplify investors' profit and loss swings and increase the likelihood of principal loss. By raising the capital requirement, the bank can, to some extent, guide investors towards more rational participation and reduce risk exposure stemming from speculative trading.

Looking at the overall evolution of banking business, standardizing individual precious metals trading is an ongoing task. Between 2020 and 2022, several commercial banks collectively implemented measures such as suspending new account openings, raising minimum trading amounts, and limiting position sizes. Since entering June 2026, raising margins and partially suspending auction trading have become the main themes of a new round of tightening.

For instance, ICBC announced on June 24 that it would cease handling agency Shanghai Gold Exchange individual auction trading business starting July 24. The common goal of these measures is to implement suitability management requirements, ensuring that financial derivatives align with investors' actual risk tolerance.

As an agent, commercial banks bear the responsibility of preventing risk contagion while providing trading channels. Proactively raising margin requirements is a routine risk management action by banks based on the current market environment. The Shanghai Gold Exchange, as the organizer of the underlying market, dynamically adjusts the margin rates for various contracts based on market conditions.

Adjustments by commercial banks typically add an additional percentage on top of this base to establish their own risk prevention standards. For investors already holding relevant contracts, the period before the new rules take effect is a window for position assessment. As the July 9 close and settlement approaches, investors need to monitor the available funds in their accounts.

If the funds in the margin account are insufficient to meet the new 190% standard, investors may face requirements to add funds or partially close positions.