ICCL - Derivatives Position Limits
Margining Framework – Tri Party Repo

1. Tri-Party repo with Settlement Guarantee (Securities Transferred to Lender) Anonymous Trading on Special and Basket Repo

  • From Transaction to Ready Leg
    ICCL shall levy an Initial Margin of 0.5% of the transaction value on the Lender. The Initial Margin shall be collected online on an upfront basis by adjusting against the eligible collateral deposited by the Lender with ICCL at the time of transaction. The Initial Margin so levied on the Lender shall be released when the funds pay in obligation is honoured by the Lender depending on the settlement cycle chosen by him i.e. T+0 (same day) or T+1 (next trading day).
    ICCL shall not levy an Initial Margin on the Borrower.
  • From Ready Leg to Forward Leg
    • Ready Leg Margin
      ICCL shall levy a Ready Leg Margin as a percentage on the transaction value on the Lender as specified by ICCL from time to time. The percentage shall be at least equal to the applicable haircut on the eligible repo security.
      ICCL shall not levy a Ready Leg Margin on the Borrower.
    • Mark to Market Margin
      The eligible repo securities shall be marked-to-market on a daily basis. The Mark to Market Margin shall be levied on either the Borrower or the Lender for each repo transaction.
      The Borrower would be required to bring in additional eligible collateral in case of a down movement in the price resulting in a mark-to-market loss on the eligible repo securities portfolio of the borrower.
      The Lender would be required to bring in additional eligible collateral in case of a upward movement in the price resulting in a mark-to-market profit on the eligible repo securities portfolio.
      This MTM would be retained by ICCL and not settled. The MTM margin of the Borrower shall be released upon pay-in of funds in the Forward Leg. The MTM margin of the Lender shall be released upon pay-in of securities in the Forward Leg.
  • Forward Leg
    Margins levied on the Borrower shall be released on fulfilment of the funds pay in obligation. Margins levied on the Lender shall be released on fulfilment of the securities pay in obligation.


2. Tri-Party repo with Settlement Guarantee (Securities held by ICCL) Anonymous Trading on Special and Basket Repo

  • From Transaction to Ready Leg
    ICCL shall levy an Initial Margin of 0.5% of the transaction value on the Lender. The Initial Margin shall be collected online on an upfront basis by adjusting against the eligible collateral deposited by the Lender with ICCL at the time of transaction. The Initial Margin so levied on the Lender shall be released when the funds payin obligation is honoured by the Lender depending on the settlement cycle chosen by him i.e. T+0 (same day) or T+1 (next trading day).
    ICCL shall not levy an Initial Margin on the Borrower.
  • From Ready Leg to Forward Leg
    • Ready Leg Margin
      In this model, ICCL shall not levy a Ready Leg Margin on the Borrower or the Lender.
    • Mark to Market Margin
      The eligible repo securities shall be marked-to-market on a daily basis. The Mark to Market Margin shall be levied on the Borrower only.
      The Borrower would be required to bring in additional eligible collateral in case of a down movement in the price resulting in a mark-to-market loss on the eligible repo securities portfolio of the borrower.
      This MTM would be retained by ICCL and not settled. The MTM margin of the Borrower shall be released upon pay-in of funds in Forward Leg.
  • Forward Leg
    Margins levied on the Borrower shall be released on fulfilment of the funds pay in obligation. Margins levied on the Lender shall be released on fulfilment of the securities pay in obligation.