The National Commodity Clearing Limited (NCCL) on August 07, 2024, notified regarding the revision in the Pre-expiry margin on Options on Futures Contracts.
The following has been stated namely: -
• It is in reference to NCCL circular no. NCCL/RISK-030/2024 dated June 24, 2024, on Margins for Options on Guar Seed Futures Contracts.
• It states that the pre-expiry margin shall be levied as 33.33%(Expiry-2), 66.66%(Expiry-1), and 100%(Expiry) of the initial margins of underlying futures contracts three days before the expiry (including the day of expiry) of the options contracts.
• It states that the pre-expiry margin shall be charged only on At the Money (ATM) and In the Money (ITM) long and short option positions.
• It states that for short option positions, the actual Short Option Minimum Margin (SOMM) charged shall be reduced from the total pre-expiry margin to be charged.
• The revised pre-expiry margin shall be applicable in all the running options on futures contracts expiring from August 2024.
[Notification no. - NCCL/RISK-044/2024]
