Commodity index futures permission: exchanges must obtain prior regulator approval and meet index construction and risk-management standards. Recognised stock exchanges may introduce futures on commodity indices only after obtaining prior regulatory approval and submitting historical index data; they must comply with index construction standards (IOSCO compliance, constituent eligibility, turnover and concentration limits, transparent rebalancing and roll-over), publish real time index values and methodology, make specified public disclosures, and implement product-design and risk-management frameworks (cash settlement, VWAP-based final price, position limits, and CPMI IOSCO compliant margining and monitoring).
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Commodity index futures permission: exchanges must obtain prior regulator approval and meet index construction and risk-management standards.
Recognised stock exchanges may introduce futures on commodity indices only after obtaining prior regulatory approval and submitting historical index data; they must comply with index construction standards (IOSCO compliance, constituent eligibility, turnover and concentration limits, transparent rebalancing and roll-over), publish real time index values and methodology, make specified public disclosures, and implement product-design and risk-management frameworks (cash settlement, VWAP-based final price, position limits, and CPMI IOSCO compliant margining and monitoring).
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