GBOT has currently empanelled the following banks, designated as Clearing Banks for the purpose of settlement of funds for pay-in/ pay-out and margin obligations of Clearing Members.

The Clearing Members shall open and maintain the following US Dollar and Mauritian Rupee denominated accounts with one of the designated Clearing Banks for the purpose of settlement through GBOT:

• Clearing and Settlement Account (Currency Derivatives)
  
  Additionally, Clearing Member are also requested to maintain their following accounts with the same Clearing Bank to ensure and facilitate the swift and smooth movement of their funds to their Clearing and Settlement account within the same bank
• Clearing Member’s own proprietary account,
• Client Account
• Any other banking accounts as may be specified by GBOT from time to time.

The Clearing Members shall open and maintain the following US Dollar denominated accounts with one of the above designated Clearing Banks for the purpose of settlement through GBOT:

• Clearing and Settlement Account (Commodity Derivatives)
  
  Additionally, Clearing Member are also requested to maintain their following accounts with the same Clearing Bank to ensure and facilitate the swift and smooth movement of their funds to their Clearing and Settlement account within the same bank
• Clearing Member’s own account,
• Client Account
• Any other banking accounts as may be specified by GBOT from time to time.

Clearing Members who are on multiple market segment of GBOT shall open and maintain separate and distinct clearing and settlement account with the Clearing Bank for each market segment. GBOT will not recognise the availability of funds in another market segment clearing and settlement account while seeking to effect debits of a Clearing Members pay-in obligation in another market segment.

The pay-in and pay-out of daily mark to market profit / loss settlements and final settlement obligations of Currency / Commodity futures contracts shall be affected on T+1 basis.

The Members are required to have clear balance of funds in their settlement account towards their pay-in obligation by 8:30 hours (Mauritian Time) GMT + 4 on the settlement day

GBOT will carry out the second run to effect the collection of the outstanding obligation at 11:00 hours (Mauritian Time) GMT + 4.
The pay-out of funds shall be effected to the receiving Members settlement accounts on or after the scheduled payout time i.e. 13:00 hours (Mauritian Time) GMT + 4.

The Clearing Member’s exposure will be reduced by the amount of pay-in shortfall. However, if the initial margin of the Clearing Member including the minimum initial margin to be brought in on behalf of the affiliated Trading Members fall below the minimum requirement, then the Clearing Member will be placed in suspend-square off mode.

A Clearing Member may bring in additional deposit towards margins on behalf of the Trading Members affiliated to them. Currently the additional margin shall also be made of cash till further notification. The Clearing Members are required to send their request in the multiples of US $ 1,000 (One Thousand US Dollar Only) to the Exchange as per prescribed format.

The procedure for providing additional deposit towards Margins is as below.
The Clearing Members will:

• Instruct their Clearing Bank to transfer funds as Additional Margins to GBOT’s  Clearing   and Settlement Account  with the same Clearing Bank. Clearing Member to use the standard message “Clearing Member Code and Clearing   Member Name” while effecting transfer through internet.
• Fax a message to GBOT in the format as per prescribed to GBOT confirming the  transfer of funds.
• Clearing Bank to confirm to GBOT about transfer of the said funds from the Clearing Member’s Account to GBOT’s Clearing and Settlement Account.

 OR

• Clearing Member to effect transfer of Additional Margins through internet from their Clearing and Settlement Account to GBOT’s Clearing and Settlement Account with the same Clearing Bank. Clearing Member to use the standard   message “Clearing Member Code and Clearing Member Name” while effecting transfer through internet.
• Fax confirmation to be send by the Clearing Member to GBOT’s Clearing and Settlement department as per prescribed format
• GBOT to check the effect of the above increase in Additional Margins on verifying its account over internet.

Increase in the margin through one of the above methods shall be for a minimum of US $ 1000 (One Thousand US Dollar Only) and in multiples thereof.

The initial margin limits calculated by CME SPAN based margining system are utilized/blocked immediately on execution of each trade.

The members are alerted at three different levels of utilization of the initial margin, namely by reaching 60%, 75% and 90% margin utilization. The members are placed in "Square-off Mode", upon reaching 100% utilization of their margin limits, after which these members can initiate only such trades which would reduce their open positions.

Marking to market (MTM) of positions held by each Member is carried out on a real-time basis. The loss positions of Trading Members are computed on line in order to ensure that a Trading Member does not accumulate losses beyond a particular level.

While monitoring the loss position of the Members, the Exchange adopts the following procedure

• In respect of any trade of any previous day still remaining open, the MTM loss monitoring is calculated by comparing the difference between the previous day's closing price and the last traded price on the GBOT market.
• In case of the current day’s trades, mark to market loss would be computed by comparing the traded price at which the trade took place and last traded price on the GBOT market.
• MTM loss is netted at the contract level for all the clients of the Trading Member. Netted profits in one contract are not adjusted for netted losses in the other contract of the Trading Member.

The MTM Loss Limit available to the Member is currently fixed at 75% of the total deposits of the Member (i.e. total of all Interest Free Security Deposit if any, initial margin and additional margin).

GBOT will generate the alerts and transmit the same to the Members of MTM loss limits utilization at 60%, 75% and 90% against such available MTM loss limits for the Member. On the MTM loss reaching 100% of the said Loss Limit (75% of total deposits of the Member), the Member will be put in square off mode where the Member will be allowed to only square off their existing positions and will not be allowed to take fresh positions.

For a client, currency / commodity futures position in one expiry month which is hedged by an offsetting position of the same currency / commodity futures in a different expiry month would be treated as a calendar spread.