NCCPL to improve and strengthen the prevailing risk management framework
The National Clearing Company of Pakistan Limited (NCCPL) is acting as a Central Counterparty and accordingly managing the risk management framework to ensure efficient and transparent provisions of clearing and settlement services to its Clearing Members. As part of its continued endeavor to develop and implement stringent yet practical risk management measures, the NCCPL, under the guidance of the apex regulator, Securities & Exchange Commission of Pakistan, has taken following steps to improve and strengthen the prevailing risk management framework that shall become effective from March 9, 2017:
10% Increase in VaR Margins and Haircuts for Ready and Deliverable Futures Market (“DFM”)
Revised list of Margin Eligible Securities (“MES”) acceptable as collateral in DFM
In order to ensure timely communication and seamless implementation of above stated measures, the Company had already issued various notices and circulars for creating awareness among market participants in February, 2017.