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