MCCIL has put in place robust risk management system to mitigate the settlement risk. The liquid assets placed by the members with exchange /clearing corporation as collateral plays a significant role in risk management.
The pay-in and pay-out of daily mark to market settlements and final settlement obligations for Interest Rate Futures is carried out in accordance with the settlement schedule issued by MCCIL periodically or from time to time for Currency Derivatives Segment. Daily mark to market settlement and final settlement in respect of admitted deals in futures contracts are cash settled by debit / credit of the designated clearing accounts of clearing members with the respective clearing bank.
The Clearing Members shall maintain clear balance of funds in their designated clearing bank accounts with the respective clearing bank as per on or before the timelines for pay-in on the settlement day. The pay-out of funds will be credited to the receiving members settlement account on or after the scheduled payout time.
Daily settlement of mark to market profits/losses of Interest Rate Futures contracts is effected on T+1 day as per the timelines/schedule specified by MCCIL. All positions (brought forward, created during the day, closed out during the day) of a clearing member in futures contracts, at the close of trading hours on a day, are marked to market at the daily settlement price (for daily mark to market settlement) and settled.
Final settlement of the Interest Rate Futures contracts is effected on T+1 day as per the timeliness specified by MCCIL. All positions (brought forward, created during the day, closed out during the day) of a clearing member in futures contracts, at the close of trading hours on the last trading day of the contract, will be marked to market at final settlement price (for final settlement) and settled. Open positions in a futures contract will cease to exist after its expiration day.
|The timelines prescribed by MCCIL for settlements in Currency Derivatives Segment are as follows:|
|Pay-in of Funds||On settlement day by 8:30 AM|
|Pay-out of Funds||On settlement day after 10:30 AM|