Risk is inherent where events expected or unanticipated may happen and it may have an adverse impact on clearing and settlement of trades. Risk containment measures include monitoring of liquid net worth, collateral deposits and margin requirements on an ongoing basis and updating the risk parameters on periodic intervals based on volatility and price movement of the contract/security.
Members are required to deposit collaterals in the form of cash, bank guarantees, fixed deposit receipts, G-Secs, approved securities and any other form of collaterals as may be prescribed from time to time by the Metropolitan Clearing Corporation of India Ltd.
Segregation of member deposits shall be as under:
Liquid Net-worth is computed as liquid assets less initial margin and extreme loss margin payable at any point in time. As per extant regulatory guidelines, a Clearing Member is required to maintain Rs. 50 Lakhs as minimum liquid net worth. The clearing member shall meet with the liquid net-worth requirements prescribed by SEBI/Metropolitan Clearing Corporation of India Ltd. at all points of time.
Minimum Deposit Requirement
Composition of Minimum Deposit Requirement
Other than Cash
Any failure on the part of a Clearing Member to meet with the minimum deposit requirements at any point of time is treated as a violation of the Rules, Bye-Laws and Regulations of the Metropolitan Clearing Corporation of India Ltd.
Following position limits shall be applicable for Interest Rate Futures contracts: