Essay regarding Project about Futures and Options

PROJECT SURVEY

ON

" TRADING & CLEARING MECHANISM & REGULATORY FRAMEWORK PERTAINING TO FUTURES AND OPTIONS” SUBMITTED BY

(10018, 10028, 10040, 10073)

SUMITTED

TO

PROF. Dr SAMPADA KAPSE.

PGDM PLAN

(YEAR: 2010-12)

TOLANI COMMENCE OF SUPERVISION STUDIES

ADIPUR

Overview

TRADING MECHANISM

In Indian framework the futures and options & alternatives traded on NSE is known as NEAT-F& U trading system. Entities involved with trading system are:

1 . Trading members.

2 . Eradicating members.

3. Professional clearing members.

5. Participants.

CLEANING MECHANISM

Countrywide Securities Removing Corporation Limited (NSCCL) looks after all clearing and negotiation of trades executed upon futures and options about NSE Three main activities of clearing and arrangement process happen to be: •Clearing.

•Settlement.

•Risk Administration.

The cleaning mechanism essentially involves doing exercises open positions and obligations of eradicating (self-clearing/trading-cum-clearing/professional clearing) members. This position is considered intended for exposure and daily perimeter purposes.

REGULATING FRAMEWORK

Investments Contracts Work 1956 of SEBI Take action regulates the trading of derivatives in India. A committee was forms by simply SEBI to develop the appropriate regulating framework pertaining to derivative trading in India.

TRADING MECHANISM

1 . Amazing orders needs to be identified as " Pro” and others of customers should be identified as " Cli”. 2 . The ideal brokerage chargeable by a trading member with regards to trades impacted in the deals admitted to dealing on the F& O Segment of NSE is definitely fixed by 2 . 5% of the agreement value bar statutory prices.

a few. What is Working day order?

A day order, as the brand suggests can be an buy which is valid for the day on which it is joined. If the purchase is not executed during the day, the system cancels out the buy automatically at the end of the day. 4. Precisely what is Immediate or perhaps Cancel (IOC)?

An IOC order enables the user to sell or buy a contract as soon as the order is usually released in the system, declining...