Tag Archives: equity index futures

Equity Stock Option

ACCOUNTING IN CASE OF DEFAULT When a client defaults in making payment in respect of a daily settlement, the contract is closed out. The amount not paid by the client is adjusted against the initial margin. In the books of the client, the amount so adjusted should be debited to Mark to Market Equity Index Futures account with a corresponding credit to ‘Initial Margin

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Equity Index

ACCOUNTING AT THE INCEPTION 0f THE CONTRACT Every client is required to pay to the trading member/ clearing member, the initial margin determined by the clearing corporation as per the bye-laws/regulations of┬áthe exchange for entering into an equity index futures contracts. Such initial margin paid/payable should be debited to “Initial Margin – Equity Index futures account”. Additional margins, if any, should also be accounted

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Future Trading

REPORTING OF CLIENT MARGIN Clearing Members and Trading Members are required to collect upfront initial margins from all their Trading Members L constituents. Clearing members are required to compulsorily report, on a daily basis, details in respect of such margin amount due and collected, from the Trading Members/Constituients clearing and settling through them, with respect to the trades executed and open positions of the

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