Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
27 Jan 2023, 01:51 PM
Because anyway in case of deep ITM situations, unless a major crash or gap up happens, the chances of expiring deep ITM is less, as margins starts to increase from Friday of the 3rd week, which if failed to keep will be auto squared off by RMS within 1 day. So this leaves the CTM contracts where the risks are higher as chances of expiring ITM in the last minute is higher. So according to that article if margin is not sufficient, it says contract wont get exercised. Please kindly clarify.