Risk Reduction Mode

Clearing/trading member shall be compulsorily placed in risk reduction mode when 90% of the clearing member's capital/trading member limit is utilised towards margins.

When a member moves in to risk reduction mode:

• All unexecuted orders shall be cancelled
• Fresh orders placed by members to reduce open positions shall be accepted.
• Fresh orders placed by members that increase open positions shall be checked for sufficiency of margins and orders that do not satisfy sufficiency of margins will be rejected.
• Fresh orders can be placed for immediate or cancel (IOC) only
• Members will be able to trade in normal mode as and when the utilisation goes below 85%

Additionally

Members shall not be allowed to place orders with custodial participant code

Client and Custodial Participant code modification shall not be permitted

Clearing members will not be allowed to Approve/Reject trades