| Monday 06th February 2012 |
KARACHI STOCK EXCHANGE RISK MANAGEMENT SYSTEM
Risk management system for KSE and members are different. A KSE risk management system covers all trading markets. The risk management systems features include:- Exchange trading systems monitor security wise, client wise and market wise exposure of each member in all markets.
- KSE allows members an exposure limit of 25 times their net balance which is calculated periodically.
- All positions are taken on net basis for each market traded in the KSE and based on that Margin requirements are monitored.
- The system will take into account actual traded values for the purpose of calculating Exposure.
- All trades due for settlement on that day will be excluded for calculation of Exposures, once settled.
- In case the day end position crosses the exposure, Members are required to deposit a margin to maintain the net capital balance exposure clause.
- Different markets margin deposits are:
- Ready Market 100% cash/eligible securities
- Future Market 100% in cash (special margin: 50%=cash,50% securities)
- CFS Market 100% in cash