The Multi Commodity Exchange of India Limited (MCX) on January 09, 2025, revised the Threshold Limits for Concentration Margin.
The Commodities shall be eligible for concentration margin as per the following conditions:
• For Non-Agri Commodities:
Commodities shall be eligible for concentration margin if any one of the following conditions is met
o The Open Interest Value of the commodity exceeds 5% of the Exchange Open Interest Value
o Threshold limits specified in Annexure-1
• For Agri Commodities:
Commodities shall be eligible for concentration margin if Open Interest exceeds Threshold limits specified in Annexure-1
The following additional points have been stated:
• The concentration margins shall be calculated at the end of each day and shall be applicable for the next trading day till the End of Day and shall remain blocked from the available collateral deposits of the Member.
• Concentration margin shall be over and above all other margins as may be applicable.
• For Clients who have submitted documents for hedge limits and have been allocated Hedge Code, such positions in Hedge Code shall be excluded from levy of concentration margin.
• Client’s commodity level open interest shall be computed as netted position across contracts and variants.
• In addition to client level concentration margins, Clearing Member level concentration margins shall also be applicable based on the defined slabs.
• Clearing Member’s commodity level open interest shall be computed as higher of summation of long or short positions of each TM-Client combination in the respective commodity grossed up at Clearing Member Level.
• Concentration margins shall be made applicable only to open positions in Futures Contracts.
The provisions of this circular shall be applicable from begin of day on January 15, 2025.
[Circular No. MCX/MCXCCL/016/2025]
