Disclosures by Stock Exchanges for commodity derivatives
Summary
This circular mandates recognized stock exchanges to enhance transparency in commodity derivatives markets by making additional disclosures on their websites. It prescribes specific formats for disclosing open interest, turnover, and position limits categorized by participant types such as farmers, value chain participants, and foreign entities. The regulations require weekly disclosures initially, transitioning to daily reporting, with full implementation of historical data maintenance and bye-law amendments.
Text
all recognised stock exchanges shall make additional disclosures on their websites with respect to trading in commodity derivatives.
the stock exchanges shall categorise the participants in the following six categories: Farmers/FPOs, Value chain participants (VCPs), Proprietary traders, Domestic financial institutional investors, Foreign participants, and Others.
The categorization of the clients/members shall be made on self-declaration basis for each commodity. However, exchanges can re-classify any participant where it deems necessary to do so based on the information available with it.
In case self-declaration is not obtained for a particular client for a particular commodity, positions of such client in such commodity shall be clubbed with “Others” category.
In case there are less than 10 participants in any category, the stock exchanges while disclosing the number of participants can disclose as “less than 10”.
To begin with, stock exchanges shall make the disclosures on a weekly basis for every Wednesday by next Wednesday... by October 01, 2019.
By April 01, 2020 onwards, such disclosures shall be made on daily basis by 6:00 PM on T+1 day.
Stock Exchanges shall make disclosures on daily basis, latest within a month of the date of this circular. Such disclosures for any day are to be made before start of trading on the next day.
The recognized stock exchange shall make necessary disclaimer that the grouping of clients is based on the “Guidelines on Clubbing of Open Positions” issued by it.
Exchanges shall also maintain complete historical data of the above disclosures on their website in spread sheet format.
to make necessary amendments to the relevant bye-laws, rules and regulations.
bring the provisions of this circular to the notice of the stock brokers of the Exchange and also to disseminate the same on their website.
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Source: SecMarx — Disclosures by Stock Exchanges for commodity derivatives. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.