Clearing Members / Professional Clearing Members can provide any deposits over and above their minimum liquid net-worth requirement in the form of:-
Clearing members will be subject to extreme loss margins in addition to initial margins. The applicable extreme loss margin will be 0.5% of the value of the gross open positions of the Interest Rate Futures contract or as may be specified by the relevant authority from time to time.
A calendar spread is a situation in which a position at one maturity is hedged by an offsetting position at a different maturity on the same underlying, e.g., a short position in one month contract hedged by a long position in three month contract. Margins on calendar spread positions will be at least Rs.800 for one month spread and Rs.1200 for two months spread.
As a risk containment measure, the Metropolitan Clearing Corporation of India Ltd. may require clearing members/professional clearing members to make payment of additional margins as may be decided from time to time. This will be in addition to the initial margin and extreme loss margin, which are or may have been imposed from time to time.
Clearing members / Professional Clearing members shall provide for margin in any one or more of the eligible collateral modes as detailed above. The margins are collected /adjusted from the liquid assets of the member on a real time basis.
Guidelines issued by SEBI, MSEI and MCCIL from time to time regarding collection and reporting of client margins by members in Currency Derivatives Segment shall be mutatis mutandis applicable for Interest Rate Futures contracts. Members are required to collect margins (initial margin, extreme loss margin and calendar spread margin) from clients and report the details as per the procedure specified for Currency Derivatives Segment from time to time. Short collection or non-reporting of client margins shall attract penalties as specified by SEBI/MSEI/MCCIL from time to time.