Margining in Cash Market.

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..... 07/2005 dated February 23, 2005 on the comprehensive Risk Management Framework for the cash market. 2. Currently in the cash market, VaR margin rate is calculated at the end of the trading day and then applied to the open positions of the subsequent trading day. However, in the derivative market, the risk parameter files for computation of the margins are updated intra-day. 3. With a view to ens .....

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..... plementation, no stock exchange shall permit trading activity unless it is in a position to implement the aforesaid methodology. 5. The Stock Exchanges are also advised to ; 5.1. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately. 5.2. bring the provisions of this circular to the notice of the member brokers/clearin .....

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