The Multi Commodity Exchange Clearing Corporation Ltd. (MCX) on December 05, 2024, issued a notification regarding the revision in threshold limits for concentration margin.
It has introduced concentration margin requirements as a risk management measure for commodities:
• For Non-Agri commodities, concentration margins apply if the commodity's Open Interest (OI) exceeds 5% of the total Exchange OI or meets specific threshold limits in Annexure-1.
• For Agri commodities, concentration margins are triggered if the OI surpasses these specified thresholds.
• For new or re-launched commodities, a minimum threshold OI of Rs. 250 crore applies to narrow and sensitive commodities and Rs. 500 crore for broad commodities, effective for one year.
• It states that relevant details on concentration margins will be accessible in members' SFTP download folders.
• The provisions of this circular shall be applicable from begin of the day on December 13, 2024.
[Notification No. - MCX/MCXCCL/801/2024]
