The Multi Commodity Exchange of India Ltd (MCX) on June 07, 2024, issued the notification regarding the Revision in Threshold Limits for Concentration Margin.
The following has been stated namely: -
• As a risk management measure, Commodities shall be eligible for concentration margin as per the following conditions:
o For Non-Agri Commodities - Commodities shall be eligible for concentration margin if any of the specified conditions are met.
o For Agri Commodities - Commodities shall be eligible for concentration margin if Open Interest exceeds Threshold limits specified in Annexure-1
• Concentration margin shall be levied as under:
o Commodity wise threshold limits applicable for concentration margin is specified in Annexure 1.
o The applicable concentration margins at the Client Level have been stated in the notification
• The concentration margins shall be calculated at the end of each day and shall be applicable for the next trading day till the End of Day and shall remain blocked from the available collateral deposits of the Member
• Members shall be required to report collection of Concentration Margin from their clients for the purpose of Client Margin Reporting.
The circular shall be applicable from June 14, 2024.
[Notification No. MCX/MCXCCL/387/2024]
