The National Stock Exchange (NSE) on July 18, 2024, notified regarding the Cross Margin benefits for offsetting positions having different expiry dates.
The following has been stated:
• Positions eligible for cross-margin benefit:
The Cross-margining shall be available across the Capital market and F&O segment and to all categories of market participants. The positions of clients in both the Capital market and F&O segments to the extent they offset each other shall be considered for the purpose of cross-margining as per the following priority:
o Index futures and constituent stock futures in F&O segment having expiry date same as index futures contract
o Index futures and constituent stock futures in F&O segment having expiry date different from index futures contract
o Index futures and constituent stock positions in Capital market segment
o ETF and constituent stock futures in F&O segment
o ETF and constituent stock positions in Capital market segment
• Computation of cross-margining benefit:
o The computation of cross-margining benefit shall be done at client level on an online real time basis and provided to the trading member/clearing member/custodian, as the case may be, who, in turn, shall pass on the benefit to the respective client.
o For institutional investors the positions in Capital market segment shall be considered only after confirmation by the custodian on T+1 basis and on confirmation by the clearing member in F&O segment.
o The positions in the Capital market and F&O segment shall be considered for cross-margining only till time the margins are levied on such positions.
This notification will come into force from July 29, 2024.
[Notification No NCL/CMPT/62978]
