Members can give-up trades pertaining to their Custodial Participant clients who want to settle their trades through other Clearing Members. The Clearing Members of the custodial participants need to confirm such trades to take-up the positions for settlement. Such trades are to be confirmed by the Clearing Members in such manner, within such time and through such facility as may be provided to Clearing Members from time to time by BSE/ICCL. The trades which have been confirmed by Clearing Members will form part of the obligations of concerned Clearing Members and the Clearing Members will be responsible for all obligations arising out of such trades including the payment of margins, penalties, any other levies and settlement of obligations. In case of trades which have not been confirmed by the Clearing Members of the Custodial Participants, the same will be considered as trades pertaining to the Trading Members entering such trades and forming a part of the obligations of Clearing Members, who clear and settle for such Trading Members.
ICCL has provided the facility for setting take-up limits at Custodial Participant Code (CP Code) level and for on-line, real time auto take-up/confirmation of trades. The said facility is available in the Real Time Risk Management System (RTRMS) module.
The salient features of the said facilities in the RTRMS module are as follows:-
- For Auto Take-up process,CP - Clearing Members can select the option on RTRMS screen to activate their respective CP code/s for the facility of auto take-up/confirmation of trades till 5.00 pm on any working day. Such selected CP Codes will get activated for auto take-up/confirmation on the next trading day. For taking up of trades up to the assigned limit, the CP-Clearing Members would be required to set specific CP Code limit or select the option of 'unlimited' for taking-up position without any set limit. Accordingly, the system would accept trades for auto confirmation up to the set limit in respect of the activated CP Codes. On reaching the set limit of margin utilization, the pending trades under such CP code would get transferred to manual take-up mode and trading limits/margin deposits of the Trading Member/Clearing Member (mapped with the Trading Member) would get utilized as per the existing process.
- In Manual Take-up process, Members can give-up trades pertaining to their Custodial Participant clients who want to settle their trades through other Clearing Members. The Clearing Members of the custodial participants need to confirm such trades to take-up the positions for settlement.
- Once the confirmed trades appear under the CP-Clearing Member, all types of margins pertaining to such trades will be utilized from the collateral deposits of the concerned CP-Clearing Member on an on-line, real time basis. However, if such CP-Clearing Member confirming (taking-up) the trades do not have sufficient un-utilized collateral, then such trades will not get confirmed and margins of the Clearing Member (mapped with the Trading member) would be utilized.