The Indian Clearing Corporation Limited (ICCL) on June 17, 2026, issued circular regarding the Provision of Facility for Monitoring Intraday Uncrystallised Mark-to Market (MTM) Losses for Futures Contracts.
BSE Clearing Limited (BSECL) has introduced an optional facility in its RTRMS system to help Clearing Members monitor intraday uncrystallised Mark-to-Market (MTM) losses at the Trading Member level for open futures positions. This facility is independent of the existing margin monitoring framework that is linked to collateral, thereby functioning as an additional risk monitoring tool rather than a replacement.
The facility is available on a request basis, requiring Clearing Members to formally apply to BSECL. Once activated, members can configure MTM loss limits for their associated Trading Members and monitor these limits through RTRMS. The system provides automated email alerts when MTM losses reach specified thresholds of 70%, 80%, 90%, and 100% of the configured limit, ensuring timely awareness of increasing risk exposure.
MTM calculations are performed in real-time based on open futures positions and prevailing market prices, considering both client and proprietary positions. However, only net losses are aggregated at the Trading Member level for monitoring purposes. The configuration of limits and alert settings remains entirely at the discretion of the Clearing Member, with a default setting of “unlimited MTM limit” unless explicitly defined.
Importantly, this facility is purely for monitoring purposes and does not trigger any automatic regulatory or system-driven actions such as disabling trading or closing out positions upon breach of limits. Monitoring of MTM limits and margin requirements continues to operate independently, reinforcing that this tool is meant to enhance internal risk oversight by Clearing Members.
[Notice No. 20260617-36]
