Risk Management – Commodities Market
| Commodities Market risk management system | ||
|---|---|---|
| Trade organizer | NAMEX (National Mercantile Exchange) | |
| Central transaction party | MICEX-RTS | |
| Clearing organization | MICEX-RTS | |
| Requirement system for participants | Special Requirements for Applicants and existing Members. Financial Status Parameter Requirements. |
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| Limit System | - Open Position Value limit which limits possible trading participant losses; - market share limit; - price variation limits are set in order to limit contract price fluctuations. These limits should not be exceeded by the price in a trading order. |
|
| Deposit System | Preliminary deposit of the guarantee payment, deposit margin and delivery margin, providing guarantee of the trading position. | |
| Dynamic control of the deposit margin is allowed during the trading session. | ||
| Fund System | None | |
| System of additional financial provisions | None | |
| Settlement principle | Settlement with participants is carried out according to the DVP (delivery versus payment) principle. | |
| Settlement procedure in event of insolvency | There is a compulsory liquidation procedure of an insolvent participant’s open positions by transferring them to accounts of opposite position holders. Prices used in this procedure should be within the price change limit. | |
| Monitoring | Regarding participants | Compliance of participants with the requirements defined in the Rules of Membership in the NAMEX Standard Contracts for Grain, Legumes, and Industrial Crops section. |
| Regarding trades | - preliminary verification of the deposit adequacy when a trading order is submitted; - constant monitoring of trading and risks arising due to price fluctuations. |
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