As per the MCX circular dated 22nd December, MCXCCL has reviewed its circular of Additional Risk Management measures in Crude Oil contracts dated 28th April 2020 and a few points were revised as mentioned below:
- Reduction in Initial Margins:
A minimum Initial margin / Short Option Minimum Margin of 50% shall be levied on all existing and yet to be launched Crude Oil contracts.
- Withdrawal of Additional Margins:
Additional Margin of Rs. 1,00,000 (near month) and Rs.50,000 (other expiries) levied on Crude Oil Futures contracts and on short side of Crude Oil Options contracts shall be withdrawn.
- Additional margins based on price movement:
It shall continue to remain in force as per the provisions of circular MCXCCL/RISK/094/2020 dated April 28, 2020.
- Spread Margin benefit:
Spread margin benefit on Initial Margins shall be provided in Crude Oil contracts. The benefit in initial margin shall be permitted only when each individual contract in the spread is from amongst the first three expiring contracts. Spread margin benefit on spread positions shall be entirely withdrawn on the start of the expiry day.
- Options VSR:
The Volatility Scan Range (VSR) shall continue to remain at 20% for all existing and yet to be launched Crude Oil Options contracts.
The provisions of this circular shall be applicable from the beginning of the day on December 23,
Note: FYERS Policies on Commodities will be applicable over and above this.
Traders kindly take note of this.