The Multi Commodity Exchange Clearing Corporation Limited (MCX) on July 22, 2024, notified regarding the Review of the Margin Period of Risk (MPOR).
The following has been stated namely: -
• It is in reference to Circular No. MCXCCL/RISK/157/2024 dated June 26, 2024, and Circular No. MCXCCL/RISK/103/2024 dated April 29, 2024, regarding the Review of the Margin Period of Risk (MPOR).
• It states that MPOR is one of the risk measures of liquidity/ liquidation in commodity contracts. MCXCCL has reviewed the liquidity in all commodities and its variants and has decided on the minimum MPOR for August 2024.
• Accordingly, for the computation of the Initial Margin, the VaR of all commodities shall be scaled up by their respective MPOR which is attached as Annexure – 1.
[Circular no. - MCX/MCXCCL/489 /2024]
