Disclosure by Commodity Derivative Exchanges on their Websites
Summary
This circular consolidates and updates disclosure norms for National Commodity Derivatives Exchanges regarding their websites. It mandates the daily, monthly, and quarterly publication of specific trading data, member information, and disciplinary actions to promote market transparency. The provisions supersede earlier directives from the erstwhile FMC and are effective from September 29, 2016.
Text
As per Section 131(B) of Finance Act, 2015 all rules, directions, guidelines, instructions, circulars, or any like instruments, made by the erstwhile FMC or the Central Government applicable to recognized associations under the FCRA would continue to remain in force for a period of one year from the date on which FCRA was repealed, or till such time as notified by SEBI, whichever is earlier.
In the past the erstwhile FMC had issued various directives regarding disclosures by Commodity Derivative Exchanges on website. This circular is being issued to consolidate and update such norms.
Position of top 10 trading clients in buy side as well as sell side in order of maximum open interest in anonymous manner every day after the end of trading session
The delivery intent of the hedgers on a daily basis in an anonymous manner
The pay-in and pay-out of commodities made by top 10 clients including hedgers 10 days after completion of settlement, for the information of the market
Their members’ proprietary position on monthly basis. The disclosure shall include average daily proprietary position (during the month) as a percentage of member’s average daily total position (including clients) and average daily margin on proprietary position (during the month) as a percentage of margins on member’s average daily total position (including clients)
The percentage of proprietary trade and client trade done and also specify as to what percentage of this trade is by algorithmic trading/HFT. This information shall be displayed before opening of the markets on the next day.
Members data as mentioned in Annexure-I.
List of the members whose request of surrender has been approved by the Exchange, along with date of approval.
Break up of funds contributed into Settlement Guarantee Funds and will be updated on quarterly basis
Disclosure of information regarding trading activity during life cycle of contract as mentioned in Annexure-II.
The details of member (Name, Address, Names of Promoters/Owners/Partners/Directors of Company, Registration No. etc.)
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Source: SecMarx — Disclosure by Commodity Derivative Exchanges on their Websites. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.