The Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) on September 30, 2024, issued clarifications on the reporting of Segregation and Monitoring of collateral at Client Level Submission.
The following has been stated: -
•Members are required to report upfront allocation of client’s collateral to Clearing Corporations in their respective client’s unique client code (UCC) only.
•Broker’s Industry Standards Forum (ISF) represented that since there is no specific Unique Client Code (UCC) stipulated under which unidentified credits/funds received by members are required to be allocated and reported under aforesaid submission, members are unable to allocate and report such unidentified credits/funds received by member lying in suspense account /unidentified credits/any other account maintained by member.
• Given the above representations received from Broker’s Industry Standards Forum (ISF) and after consideration of the same by SEBI, members are requested to note the following clarifications:
(i)Member shall create a designated UCC “SUSPE1234N” on the PAN of member in the back office under which such unidentified/suspense account funds shall be allocated and reported to CCs under aforesaid submission. Member shall keep unidentified credits or suspense account funds upstreamed to Clearing Corporations.
(ii)Member shall not create said UCC in the UCC database of Exchanges and accordingly, orders should not be permitted by trading members on said UCC.
(iii)Members are advised to ensure compliance with requirements on or before December 19, 2024.
The detailed circular is given in the document below.
[MCXCCL Circular No. MCXCCL/INSP/248/2024]
