ICCL - Derivatives Clearing Mechanism
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Clearing Mechanism
A Clearing Member's open position is arrived by aggregating the open position of all the Trading Members (TM) and all custodial participants clearing through it. A TM's open position in turn includes its proprietary open position and clients' open positions.

Proprietary / Clients' Open Position

When entering orders on the trading system, TMs are required to identify them as proprietary (if they are own trades) or client (if entered on behalf of clients) through 'OWN / CLIENT' indicator provided in the order entry screen. The proprietary positions are calculated on net basis (buy - sell) and client positions are calculated on gross of net positions of each client i.e., a buy trade is off-set by a sell trade and a sell trade is off-set by a buy trade.

For a CM – ABC Ltd, with TMs clearing through him – UVW Ltd and XYZ Ltd

    Proprietary Position Client 1 Client 2 Net Member position
TM Security Buy Sell Net Buy Sell Net Buy Sell Net
UVW Ltd Sensex 50 December contract 6000 4000 2000 5000 3000 2000 6000 4000 2000 Long 6000
XYZ Ltd Sensex 50 December contract 6000 5000 (1000) 6000 5000 1000 2000 3000 (1000) Long 1000 Short 2000

ABC Ltd.'s open position for Sensex 50 December contract is:

Member Long Position Short Position
UVW Ltd 6000 0
XYZ Ltd 1000 2
Total for ABC Ltd 7000 2000