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…
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 the exchange for entering into an equity index futures…
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…