Risk Reduction Mode / Close Out

Risk Reduction Mode / Close Out

Risk Reduction Mode

Members shall be compulsorily placed in risk reduction mode when 90% of the member’s capital is utilised towards margins. When a member moves into risk reduction mode:

All unexecuted orders shall be cancelled.

Fresh orders placed by members to reduce open positions shall be accepted.

Fresh orders placed by members that increase open positions shall be checked for sufficiency of margins and orders that do not satisfy sufficiency of margins will be rejected.

Fresh orders can be placed for immediate or cancel (IOC) only.

Members will be able to trade in normal mode as and when the utilisation goes below 85%.

Close out

On disablement of clearing member/trading member, trading members shall be allowed to place close-out orders. Only orders which result in reduction in existing open positions at the client level shall be accepted through the close-out in the normal market.