Risk Reduction Mode activation at 90% limit utilisation in the Currency Derivatives Segment

• Notice No: 20171124-29
• Notice Date: 24 Nov 2017
• Category: Settlement/RMS
• Segment: Currency Derivatives

To

All Clearing Members,

Currency Derivatives Segment

Subject: Risk Reduction Mode activation at 90% limit utilisation in the Currency Derivatives Segment

As part of a continuous review of risk processes and in an effort to align risk management practices across segments, it has been decided to revise the Risk Reduction Mode (“RRM”) activation threshold in its Currency Derivatives Segment. The RRM will be activated when 90% of the clearing member(s)' collateral available for adjustment against margins gets utilized.  

Current (Up till November 24, 2017)	New (November 27, 2017 onwards)
RRM activated at 100% collateral utilisation	RRM activated at 90% collateral utilisation

The Circular shall come into effect from Monday, November 27, 2017.

For and on behalf of the Indian Clearing Corporation Limited

Piyush Chourasia

Chief Risk Officer & Head – Strategy

ICCL Risk Department

Rahul Agrawal/Roopal Singh

Contact No.: [phone]

Email: [e-mail]