The National Stock Exchange (NSE) on October 21, 2024, issued the notification regarding the Changes in Extreme Loss Margins.
The following has been stated namely: -
• On the day of options contracts expiry, to increase the tail risk coverage, an additional Extreme Loss Margin (ELM) of 2% shall be levied on short index options contracts.
• The additional ELM of 2% would be applicable for all open short index options at the start of the day, as well on short index options contracts initiated during the day that are due for expiry on that day.
• The detail of the report is provided in the Annexure
This shall come into force on November 20, 2024.
[Notification No. NCL/CMPT/64639]
