Risk Management - Equity Derivatives

A sound risk management system is integral to an efficient clearing and settlement system. NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian securities markets.

Risk containment measures include capital adequacy requirements of members, monitoring of member performance and track record, stringent margin requirements, position limits based on capital, online monitoring of member positions and automatic disablement from trading when limits are breached, etc.

Risk Management for Derivative products is managed with Standard Portfolio Analysis of Risk (SPAN)®is a highly sophisticated, value-at-risk methodology that calculates performance bond/margin requirements by analyzing the "what-if's" of virtually any market scenario.

SPAN ® is a registered trademark of the Chicago Mercantile Exchange, used herein under License. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity.

• Margins
• Liquid Assets
• Voluntary Close out Facility
• NSE Clearing SPAN
• PC SPAN
• SPAN Risk Parameters
• Payment of Margins
• Position Limits
• Violations
• Client Margin Reporting
• Formats for collaterals
• Cross Margin
• Market-wise position limits (MWPL)