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, up dating risk parameters etc. in the system are monitored.
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. The clearing member shall meet with the liquid net-worth requirements prescribed by the Metropolitan Clearing Corporation of India Ltd. at all points of time.
| Minimum Deposit requirement for Clearing Members shall be as under: | ||||
|---|---|---|---|---|
|
Sr. no. |
Category |
Minimum Deposit Requirement |
Composition of Minimum Deposit Requirement |
|
|
- |
- |
- |
Cash |
Other than Cash |
| 1 | Clearing Member's Liquid Networth | 50.00 Lacs | 50% (25.00 Lacs) | 50% (25.00 Lacs) |
| 2 | Additional deposits for each Trading Member affiliated with the Clearing Member | 1.00 Lac | 50% (0.5 Lac) | 50% (0.5 Lac) |
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.
Position limit for various categories of participants are mentioned below. For the purpose of computing the gross open position, Long position shall be considered as Long Futures, Long Calls, and Short Puts and Short Position shall be considered as Short Futures, Short Calls, and Long Puts
The gross open positions of the client across all contracts in the respective currency pairs shall not exceed the limits as mentioned below.
| POSITION LIMITS FOR CLIENTS, NON RESIDENT INDIANS (NRIS) AND CATEGORY II FPIS THAT ARE INDIVIDUALS, FAMILY OFFICES, AND CORPORATES | |
|---|---|
|
Currency Pairs |
Position limits |
| USD-INR | Gross open position across all contracts shall not exceed 6% of the total open interest or USD 20 million, whichever is higher. |
| EUR-INR | Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 10 million, whichever is higher. |
| GBP-INR | Gross open position across all contracts shall not exceed 6% of the total open interest or GBP 10 million, whichever is higher. |
| JPY-INR | Gross open position across all contracts shall not exceed 6% of the total open interest or JPY 400 million, whichever is higher. |
The Exchange would disseminate alerts if the gross open position of the client across all members (on the basis of PAN) across all contracts exceeds the aforesaid position limits or if the gross open position of the client across all members (on the basis of PAN) across all contracts exceeds 3% of the total open interest of the previous day’s trade at the end of the day
The gross open positions of the proprietary account across all contracts in the respective currency pairs shall not exceed the limits as mentioned below.
| Proprietary positions of non-bank stock brokers | |
|---|---|
|
Currency Pairs |
Position limits |
| USD-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or USD 50 million, whichever is higher. |
| EUR-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 25 million, whichever is higher. |
| GBP-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 25 million, whichever is higher. |
| JPY-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 1000 million, whichever is higher. |
The gross open positions of the trading member across all contracts in the respective currency pairs shall not exceed the limits as mentioned below.
| Stock Brokers (bank and non-bank), Category I and II FPIs | |
|---|---|
|
Currency Pairs |
Position limits |
| USD-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher. |
| EUR-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 50 million, whichever is higher. |
| GBP-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 50 million, whichever is higher. |
| JPY-INR | Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 2000 million, whichever is higher. |
Within the applicable position limits, position taken by the FPIs in the currency derivative segment shall be subject to the following conditions:
Position taken by Domestic Clients within the applicable position limit shall be subjected to the following conditions:
In case of positions taken to hedge underlying exposure, the position limit linked to open interest shall be applicable at the time of opening a position. Such positions shall not be required to be unwound in the event a drop of total open interest in a currency pair at a stock exchange. However, participants shall not be allowed to increase their existing positions or create new positions in the currency pair till they comply with the position limits.
