CLEARING BANKS
Funds Settlement takes place through clearing Banks. For the purpose of settlement all clearing members are required to open a separate ban k account with NSCCL designated clearing bank for Futures and Options segment. The clearing and settlement process comprises of the following three main activities.
- CLEARING
- SETTLEMENT
- RISK MANAGEMENT.
TABLE 1: PROPRIETARY POSITION OF TRADING MEMBER MADANBHAI ON DAY 1.
Trading member Madan bhai trades in the futures and options segment for himself and two of his clients. The table shows his proprietary position. Note: A buy position 200 @ 1000 means 200 units bought at the rate of Rs. 1000
| Trading Member |
Buy |
Sell |
| Madan bhai | ||
| Proprietary |
200 @ |
400 (5) |
| Position |
1000 |
1010 |
| TABLE 2: CLIENT POSITION OFTRADING MEMBER MADANBHAI ON DAY 1
|
Trading member Madan Bhai trades in the futures and options segment for himself and two of his clients. The table shows his client position:
Trading Member Buy Sell Sell Buy
Madanbhai Open Close Open Close
Client Position
Client A 400 @ 200 @
1109″ ioocT
600 @ 200 @
llOO’ 1099
TABLE 3: PROPRIETARY POSITION OF TRADING MEMBER MADANBHAI ON DAY 2
Assume that the position on Day 1 is carried forward to the next trading day and the following trades are also executed for himself and two of his clients. A buy position 200 @ 1000 means 200 units bought at the rate of 1000.
| Trading Member Madan bhai | Buy | Sell |
| Proprietary | 200 @ | 400 @ |
| Position | 1000 | 1010 |
| TABLE 4: CLIENT POSITION OFTRADING MEMBER MADANBHAI ON DAY2
|
Trading member Madan Bhai trades in the futures and options segment for himself and two of his clients. The table shows his client position on Day 2:
Trading Member Buy Sell Sell Buy
Madanbhai Open Close Open Close
Client Position
400 @ 200 @
1109 1000
600 @ 400 @
1100 1099
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