The exchange adopts various tools and practices to protect the market participants
against adverse market conditions. It identifies and evaluates the risks through
Risk Preventive Measures.
Daily Price Range (DPR Limit): Each contract has a fixed price band. The
trade is allowed within the given price range. The range is typically fixed through
a standard percentage as per the daily price volatility of the commodity. In case
of special circumstances based on the fundamentals of the commodity the daily price
range is revised.
Mark to Market of Positions on Daily basis: All the outstanding position
of the market participants are marked on daily basis to the closing market price
of the contract. The mechanism ensures that the gain/loss relative to commodity
price movement is adjusted on daily basis by debit/credit of respective members
settlement account before commencement of the trade next day.
Value at Risk (VaR) measures the largest loss likely to be suffered on a portfolio position over a particular period with a given confidence level. VaR is measured in three variables: the amount of potential loss, the probability of that amount of loss and the time frame.
* Note: Total Margin = Initial Margin + Tender Period Margin.
The members are requested to forward all their clearing & settlement related correspondence on the following address:
Indian Commodity Exchange Limited (ICEX)
Clearing & Settlement Department
Reliable Tech Park, 403-A, B-Wing, 4th Floor, Thane-Belapur Road,
Airoli (E), Navi Mumbai – 400708, Maharastra, India.