Pre-Expiry Margin on commodities under Alternate Risk Management Framework

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....Sub: Pre-Expiry Margin on commodities under Alternate Risk Management Framework 1. SEBI vide Circular CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 and SEBI/HO/CDMRD/DNPMP/CIR/P/2019/83 dated July 26, 2019, inter alia, had prescribed norms related to Pre-Expiry Margins. 2. In light of an unprecedented event of negative final settlement price in the crude oil futures markets in the recent pas....

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....the RMRC, it has been decided in consultation with Clearing Corporations that pre-expiry margins shall be imposed on cash settled contracts wherein the underlying commodity is deemed susceptible to possibility of near zero and/or negative prices as identified by exchange/CC under ARMF circular. In case of these contracts, pre-expiry margins shall be levied during the last five trading days prior t....