FINAL SETTLEMENTS

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Abhijeet S
Settlements – Final Settlement


The Settlement done for Open Buy and Sell positions on the Contract Expiry Date is called Final Settlement



Settlements – Final Settlement


Who is responsible for Final Settlement of trades?

The responsibility of settlement is on a Trading cum Clearing Member (TCM) for all trades done on his own account and his clients’ trades

A Professional Clearing Member is responsible for settling all the Participant trades which he has confirmed to the Exchange

On confirmation by the PCM , the Participant trades get transferred from the TCM to the PCM



How is the Contract settled on Expiry?

A contract is settled at the Final Settlement Price on the Date of Expiry

The Final Settlement Price is the price of the commodity in the underlying spot markets


 
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