I. Derivatives Market's Legal Structure
II. Some abbreviation terms
- CCP: Central Counter Party Clearing House
- CM: Clearing member
- NCM: Non clearing member
- GCM: General clearing member
- DCM: Direct clearing Member
- IM: Initial deposit
- IMd: due Initial deposit to transfer of material
- MR: Required deposit level
- SM: Support deposit level
- TA: Depository account of investors opened at Securities companies
- TAT: Derivatives transaction account
- TAM: Deposit transaction account
- VM: Change in deposit. The daily profit/loss arising from price movements of all non-netted positions and net position on the Investor account.
- DSP: End of Day settlement price
- FSP: Final settlement price
- AI: Is the bond interest is not paid from the previously interest payment period till the final payment date (provided by the Stock Exchange)
- M: Multiplier
- CF: Conversion factor (provided by the Stock Exchange).
III. The rates of warning and deposit using thresholds
When the rate of use of deposit of investors:
- Level 1, 2: CCP will send warning to Clearing Member to inform investors
- Reach Limit level: CCP will send request to HNX for stopping account transactions and request Clearing Member to announce that investors to submit additional deposit or close positions.
For example: On June 2, 2017, at 9:00AM, investor A traded 20 HNX30F1706 buying position at 130, with multiple = 1,000, IMrate = 9%. Then, the transaction price of the product fluctuate as follows:
- At 10:00AM: HNX30F1706 is 127
- End of Day settlement price (DSP): 140
Investors deposit before the transaction is 280,000, the threshold of use of deposit collateral is 100%.
|127||228.600||(60.000)||288.600||280.000||103,07% => Account is stopped trading (investors have to add deposit / pay losses to ensure the collateral rate)|
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