Members with a funds pay-in obligation are required to have clear funds in their primary clearing account on or before 8. The payout of funds is credited to the primary clearing account of the clearing members thereafter.

Daily settlement price for futures contracts is the closing price of such contracts on the trading day. The closing price for a futures contract shall be calculated on the basis of the last half an hour weighted average price of such contract or such other price as may be decided by the relevant authority from time to time.

What about the settlement of unexpired future contract which are not traded in the last half hour?

What is the price to use as the benchmark in such cases? Here you can use the theoretical daily settlement price. What exactly is that? Theoretical daily settlement price for unexpired futures contracts, which are not traded during the last half an hour on a day, shall be the price computed as per the following formula:.

Foreign risk free interest rate is the relevant LIBOR rate or such other rate as may be specified by the Clearing Corporation from time to time. Final settlement price for a futures contract for the various currencies shall be as mentioned below, or as may be specified by the relevant authority from time to time. Broadly, there is the daily MTM settlement that is done for futures and options on currency.

This daily MTM settlement is to mark up the currency position to the latest price and ensure that any shortfalls in margins are collected before the commencement of the next trading day in the currency market.

Clearing & Settlement Process - Currency Futures | 5paisa School

Let us look at this process in greater detail. The positions in the futures contract for each member are marked-to-market to the daily settlement price of the futures contracts at the end of each trade day. Remember, that in case of long futures and short futures the above principle will apply.

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However, in case of long put and long call options, there is only the initial margin settlement that is done on the day of the transaction. Since the maximum loss of the long call and long put position on currencies is limited to the premium paid, there is no need for daily mark to market settlement in case of long options.

However, short options i. The margin requirement reduces to that extent.

Cash-Settled Options

The CMs who have suffered a loss are required to pay the mark-to-market loss amount to the clearing corporation, which is then passed on to the members who have made a profit. This is known as daily mark-to-market settlement. The transfer of obligations and payments happens seamlessly based on the gradation in the exchange clearing hierarchy. Theoretical daily settlement price for unexpired futures contracts, which are not traded during the last half an hour on a day, is currently the price computed as per the formula for theoretical pricing, which has been explained in detail earlier.

After daily settlement, all the open positions are reset to the daily settlement price. The mark to market losses or profits are directly debited or credited to the CMs clearing bank account. Then the respective funds get passed on to the TMs and to their trading clients. Remember, there is no physical or delivery settlement in currency futures and options and all positions in rupee pairs and also in cross currency pairs.

All these are necessarily settled in cash only. Open positions in futures contracts cease to exist after their last trading day. Defaults and shortfalls are two different things. Upon expiration of near month, new contract month will be listed for trading beginning on the next regular trading session Strike Price Interval RMB 0.

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For the next 4 quarterly options, the highest and lowest strike prices should cover 4 percent above and below the base price. Premium Quotation 0. Institutional investors may apply for an exemption from the above limit on trading accounts for hedging purposes. The position limits are not applicable to omnibus accounts, with the exception of undisclosed omnibus accounts, which accounts are subject to the limits for institutional investors.

Trading Hours Trading days conform to regular exchange trading days Regular trading sessionAMPM Taiwan time, AMAM on the last trading day for the expired contract After-hours trading session: PM on trading day - AM of the following day; no after-hours trading session on the last trading day for the delivery month contract Last Trading Day The third Wednesday of the expiration month. A contract that is in-the-money shall be exercised automatically.

If any of the following circumstances occurs on the last trading day, then the next business day shall be the last trading day, provided that the TAIFEX may adjust that date in view of the following circumstances: 1.

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Other factors affect the trading or settlement of the Contracts. Please refer to Trading Rules. Taiwan Futures Exchange Add: 14th. Spot month, the next calendar month, and the next four quarterly months. Upon expiration of near month, new contract month will be listed for trading beginning on the next regular trading session.