NISM Series XIII Common Derivatives Certification Exam Notes

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  • Extreme Loss Margin (ELM): Additional margin to cover unexpected losses.
  • Calendar Spread Charges: Lower margins for offsetting positions in different expiry months.
  • Liquid Net Worth: Liquid assets minus margins payable must meet minimum requirements.
  • Risk Reduction Mode: Triggered when 90% of collateral is utilized; restricts trading.
  • Core Settlement Guarantee Fund: Covers obligations in case of default by a clearing member.

NISM Common Derivatives

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