WHY AND HOW DAILY MARKET TO MARKET SETTLEMENTS DONE

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Abhijeet S
Settlements – Daily MTM Settlement


When is Daily MTM Settlement done ?


The information on MTM amount ( paid or received) by the broker is given thru the Extranet at the end of the day


Actual payment and receipt of funds will be made by the Member on the next trading day i.e T+1. (‘T’ being the trade date)


How does the Transfer of funds happen?


Payment will be done through a designated Clearing bank of the Exchange


The Broker makes arrangement for funds in his Settlement A/c with the bank


Instruction to the Bank for debiting/crediting the broker’s account will be sent by the Clearing Corporation (NSCCL)


Settlements – Daily MTM Settlement


What are the other payments to be made ?


Besides the MTM , Daily Margin payments will be made by the Members


Margin files will be downloaded on the Extranet


Member arranges for funds in the Settlement A/c


The Clearing Corporation debits the funds on the next day after the trading date.



What happens in case of failure ?


If the Member fails to make the payment of MTM or Margin amount, trading terminal is disabled immediately

Trading will commence on deposit of funds by the Member


Settlements – Daily MTM Settlement


Where is the information on Daily Settlement available?


All information pertaining to Settlements is available on the Member Extranet


This is available in specific folders for the Members


How do I access the Extranet?


Thru the VSAT / Leased Lines connectivity using FTP protocol


Login using Trading member Id and password during non-trading hours
 
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