Master Circular on Matters relating to Exchange Traded Derivatives
Show AI Summary
Exchange-traded derivatives: consolidated rules on contract design, VaR-based margining, exposure limits and real-time market surveillance.
The circular prescribes a consolidated regulatory framework for exchange-traded derivatives covering standardized contract design and listing procedures, portfolio-based margining using worst-scenario VaR methodologies with specified scan ranges and minimum margins, collateral valuation and haircut rules, real-time margin collection and exposure limits tied to clearing members' liquid net worth, and comprehensive surveillance, unique client coding, position limits and governance standards for exchanges, clearing corporations, trading members and clients.