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Margin Deposits

Clearing Members / Professional Clearing Members can provide any deposits over and above their minimum liquid net-worth requirement in the form of:-

Cash Deposits
Bank Guarantees
Fixed Deposit Receipts
Government Securities or Treasury Bills
Approved Securities and units of mutual funds in demat form deposited with the custodian.

Margins
Initial margin shall be computed on an online real time basis, payable on all open positions of Clearing Members, up to client level, and shall be payable upfront by Clearing Members/Professional Clearing Members in accordance with the margin computation methodology adopted by the MCX-SX Clearing Corporation Ltd. of the Exchange from time to time. Initial margin requirements shall be based on 99% value at risk over a one day time horizon. The methodology for computation of value at risk percentage shall be as per the recommendations of SEBI from time to time.

Initial Margin shall include SPAN margins, futures final settlement margin and such other additional margins, that may be specified by the MCX-SX Clearing Corporation Ltd. from time to time.

Initial margin requirement:

For client positions - shall be netted at the level of individual client and grossed across all clients, at the trading/ clearing/professional clearing member level, without any set-offs between clients.
For proprietary positions - shall be netted at trading / clearing member level without any set-offs between client and proprietary positions.

The margins so computed shall be aggregated first at the trading member level and then aggregated at the clearing member /professional clearing member level.

Updation of risk parameters

Calendar Spread Margins

A currency futures position in one expiry month which is hedged by an offsetting position in a different expiry month is treated as a calendar spread and an offsetting benefit is provided on such positions for margins. The benefit for calendar spread continues till expiry of the near month contract. Initial margins charged at a lower rate on such offsetting positions. Applicable calendar spread margin rates varies based on the duration of the spread and the underlying.

Applicable calendar spread margin rates are as follows;

Amount in Rupees

Duration of the spread	USDINR	EURINR	GBPINR	JPYINR
1 month	400	700	1500	600
2 months	500	1000	1800	1000
3 months	800	1500	2000	1500
4 months or more	1000	1500	2000	1500

Minimum Margins

Futures Final Settlement Margin

Extreme Loss margins

Imposition of additional margins

Mode of payment of margin

Payment of margins

The initial margin and extreme loss margins shall be payable upfront by the clearing members. Members are required to collect initial margins and extreme loss margins from their client/constituents on an upfront basis.

Clearing/Trading members are required to collect margins (Initial margin, extreme loss margin, calendar spread margin or any other margins) as prescribed by the Exchange / Clearing House / Regulator from their client on an upfront basis. It is mandatory for all clearing / trading members to report details of such margins collected to the Exchange / Clearing House in accordance with the procedure and formats specified or as may be specified by the MCX-SX Clearing Corporation Ltd. from time to time.

It is mandatory for all clearing /trading members to report details of such margins collected to the Clearing House of the Exchange.

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