The Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) on July 09, 2024, issued a notification regarding the Revision in Threshold Limits for Concentration Margin.
This is in modification to Circular No. MCXCCL/RISK/143/2024 dated June 07, 2024.
The following has been stated:
• The 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 one of the following conditions is met:
o The Open Interest Value of the commodity exceeds 5% of the Exchange Open Interest Value
o Threshold limits specified in Annexure-1.
o For Agri Commodities:
Commodities shall be eligible for concentration margin if Open Interest exceeds Threshold limits specified in Annexure-1.
Further for New & Re-launched Commodity, the threshold Open Interest Value of the commodity shall be subject to a minimum of “Rs.250 Crores” for Narrow & Sensitive Commodities and Rs 500 Crores for Broad Commodities. These minimum thresholds shall be applicable for 1 year from the date of launch of contracts in new/re-launched commodity.
• 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.
• The Client’s commodity level open interest shall be computed as netted position across contracts and variants.
• The Clearing Member’s commodity level open interest shall be computed as higher of summation of Long or Short positions of each TM-Client combination in the respective commodity grossed up at Clearing Member Level.
This notification will come into force from July 15, 2024.
[Notification No MCXCCL/RISK/168/2024]
