Sebi allows cross margins on commodity futures trades
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The move is part of Sebi s effort to improve the efficiency of the use of the margin capital by market participants, the regulator said.
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The clearing corporation will have the option to liquidate the positions or collateral and use the proceeds to meet the default obligation, Sebi said.
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Mumbai: In a move to deepen the commodity derivatives segment (CDS), market regulator the Securities and Exchange Board of India (Sebi) has permitted exchanges to offer cross-margining benefits to clients arbitraging between commodity index futures and their underliers, which could slash margins to trade to just a fourth of that presently chargeable.
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The government has garnered Rs 2,540.87 crore through the Series 1 of FY22 offering, the second-highest by quantity only to August 2020 s record 6.35 tonnes.
New concentration margin to hit trading volumes further
May 12, 2021
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It is levied to discourage a single or group investors attempt to corner the floating stock in the market to boost prices artificially The sharp rise in agriculture and non-agriculture prices on the futures market and subsequent levy of concentration margin by MCX is expected to further hit trading volumes on the derivatives platform.
Starting May 17, MCX will charge an additional concentration margin of up to six per cent as part of its risk management to avoid default.
The concentration margin is levied to discourage a single or group investors attempt to corner the floating stock in the market to boost prices artificially.
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