Trading or clearing members must forcefully collect the initial VAR margins and ELMs from the client. Previously, they had time up to “t+2” business days to collect margins (excluding var margins and elms) from clients.
“From January 27, 2023, the settlement cycle has decreased from T+2 to T+1 for all scrips in the cash market.
“In this regard, it has been determined that, with the view of changes in the settlement cycle, TMS (Trading Members)/CMS (Clearing Members) are necessary to gather margins (except VAR margins and ELM) from clients by the settlement date, to ensure a stronger risk management framework.
Regulators said clients must pay margins when the call is made.
He also said that time until the settlement date is permitted, not as an extension for clients to delay payments, but to avoid fines. If the client completes payments (money/securities) by the settlement date, other margins are collected and no penalties are applied. On the other hand, if payment is not made on the date of payment, a penalty will apply.
The new framework will be applied immediately.
