Trading Limit
Position Limit
The Position Limit refers to a transaction limit specifically applied to the Derivatives market. A Position Limit is only imposed if the Clearing Member (AK) faces transaction restrictions set by IDClear, where the Clearing Member can only engage in offset transactions for positions that have not been settled.
The imposition of this limit is a policy by IDClear to restrict transactions and by the Clearing Member based on information regarding potential settlement failures or other negative information. The purpose of this limit is to prevent larger failures that could harm the market.
In calculating the transaction limit, IDClear uses a risk management system called RAZOR. The transaction limit values issued will be sent to the JATS Next-G stock exchange trading system, which is then transmitted to each Clearing Member. Additionally, the limit values can be viewed on the member interface system, which Clearing Members can access directly via the web.