Role of Trading Member (TM)/ Broker . . .

Trading Member (TM) is a Member of Exchanges who has the right to execute transactions in the trading system of the exchange and the right to have contracts in its own name. The TM can also act as a Broker. As a Broker, he can deal on behalf of the clients (Registered Non-members). All the trades have to be executed only through the Trading facilities provided by the Exchange. TM will settle the transactions through Clearing Members (Trading & Clearing Members or Institutional Clearing Members). TM cum Broker is required to maintain a separate account for client transactions and is required to maintain the margin deposit and money belonging to clients in segregated accounts. TMs are responsible for all the transactions of their clients. TM will clear their Trades through Clearing Members (TCMs or ICMs).

A TM will be allowed to have Clearing relationship with only one TCM or ICM at any point of time. The obligations of the TMs are monitored by the associated TCM or ICM. If the limits are breached by a TM, they will not be allowed to do further trading unless the limits are reset on receipt of additional deposits.

To provide continuous liquidity in the market, the TMs will be acting as Jobbers in the Market. However, there are no special privileges or obligations attached to this function of TMs. TMs will compete in the market place along with customers' orders to improve the price discovery in the market. TMs will make use of the Order Based Trading System of the exchange to provide continuous stream of order flows in the market.

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Role of Trading & Clearing Member. . .

Trading cum Clearing Member (TCM) has the right to execute transactions in the trading system of the exchange like a TM. TCM also a right to clear the transactions in contracts executed in NMCEIL either on its own behalf or on behalf of other TMs. TCMs will be responsible to NMCEIL for all the obligations (margins, settlement obligations etc) of TMs on whose behalf they have agreed to clear the trades. NMCEIL and NCEDX will debit the banking account of the TCMs for all the obligations of the TMs who are clearing through TCMs. TCMs will enter into Clearing Agreements with their constituent Trading Members. They will also take the required Caution Deposit from the TMs. They will be allowed to set the limits for trading by TMs. TCMs are required to maintain segregated accounts of the all the moneys belonging to TMs on behalf of whom they are clearing the trades. If the clearing limits of TCMs are breached, all the trading members attached to them will be stopped from further trading until the limits are reset on receipt of additional deposits.The number of TCMs will be limited compared to that of TMs in NCDEX & NMCE. TCMs will be located in major towns and have banking accounts with the Designated Clearing Banks who have interface with NMCEIL

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