Cross-margining facility for offsetting index futures expands margin efficiency, subject to correlation and constituent overlap requirements. Introduction of a cross-margining facility permitting margin benefits for offsetting futures positions in highly co-related equity indices, subject to correlation, constituent overlap and weightage eligibility. Clearing Corporations must verify eligibility monthly and on constituent changes and apply to SEBI with supporting data. An initial spread margin is levied on eligible spreads, with cross-margin computed in real time at client level and passed through trading/clearing members. Exchanges and clearing corporations must update systems, rules, legal agreements for margin utilisation, notify market participants, and report implementation status to the regulator.
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Cross-margining facility for offsetting index futures expands margin efficiency, subject to correlation and constituent overlap requirements.
Introduction of a cross-margining facility permitting margin benefits for offsetting futures positions in highly co-related equity indices, subject to correlation, constituent overlap and weightage eligibility. Clearing Corporations must verify eligibility monthly and on constituent changes and apply to SEBI with supporting data. An initial spread margin is levied on eligible spreads, with cross-margin computed in real time at client level and passed through trading/clearing members. Exchanges and clearing corporations must update systems, rules, legal agreements for margin utilisation, notify market participants, and report implementation status to the regulator.
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