Market Status: Closed
Saturday, 18 Aug '18
   14:43:09 (BST)

Trading

MARGIN REQUIREMENTS WITH CSE

The CSE put in place a comprehensive risk management system, which is constantly monitored to pre-empt any trading failures. It collect margins from TREC Holders to address the problems related to the volatile trading activities as well as to settlement failure.


CSE imposes margin requirements on the TREC Holder’s additional buy trade exposure. Additional trade exposure means the amount of the total trade exposure exceeding the free limit for each TREC Holder.The free limit on the amount of the total buy exposure to trade in CSE is taka ten crore per trading day.


The TREC Holder shall pay the margins in cash, bank guarantee or FDRs etc. within one hour of exceeding the free limit on the amount of the buy trade exposure. As per Chittagong Stock Exchange (TREC Holder’s Margin) Regulations,2013 the rate of depositing the TREC Holder’s margin with the clearing house on the additional trade exposure are as follows:

SL No. ADDITIONAL TRADE EXPOSURE MEMBER'S MARGIN RATE
01. Above free limit but not exceeding 1 (one) crore @ 20%
02. Above taka 1 (one) crore above free limit but not exceeding 2 (two) crore @ 30%
03. Above taka 2 (two) crore above free limit but not exceeding 4 (four) crore @ 50%
04. Above taka 4 (four) crore above free limit @ 100%

Exposure limit violation

The trading right of the TREC Holder shall remain suspended who exceeds the free limit without depositing margin to CSE within the prescribed time.

Adjustment or refund of member's margin:

The Exchange can realise the value of the margin instruments and adjusts the amount so realised if TREC Holder fails to settle its trade with the clearing house on the settlement day.


The TREC Holder shall be liable to pay the shortfall, if any, including the costs, interest, charges and expenses involved in the realisation process, within three days of the written notice of demand issued to it by the Exchange.