May 12, 2020: National Clearing Company of Pakistan Limited (NCCPL) has announced via a notification that necessary system development has been completed at NCCPL accordingly disbursement of 50% retained profit shall start effective from May 11, 2020.
Earlier, SECP approved an amendment to NCCPL Regulations, pertaining to the disbursement of 50% Mark-to-Mark Profit in Deliverable Future Contract Market.
Following are the key changes under the revised mechanism;
1. Mark to Mark (MTM) loss at the end of the particular trading date shall be deposited by the Clearing Members with the Company on daily basis till the satisfaction of the settlement obligation on the relevant settlement date of the contract; however, any surplus amount deposited against MTM Losses of previous trading date can be withdrawn by Clearing Members after the end of the trading session.
2. The 50% Mark to Mark Profit will be computed on a daily basis and disbursed by the Company on a T+1 basis through Clearing Member designated settling bank account maintained with NCCPL. However, in case of any reduction in such a 50% retained profit from last day’s position, the same may be collected by NCCPL on the same trading day i.e. on T+0 basis as per Designated Time Schedule “DTS”.
3. The Mark to Mark profit that is determined on the last trading day of the Deliverable Future contract shall be disbursed on the monthly settlement date instead of T+1 basis;
4. In the case of Pre-Settlement Deliveries (“PSD”) tendered to NCCPL against net sold obligation in particular Deliverable Future Contract, collection/disbursement of MTM loss/profit shall not be applicable to the extent of such PSD.
5. The mechanism of PSD against margin requirement and Mark to Market losses/profits shall be the same on close of the contract;
6. The Company shall allow a return to Clearing Member on the cash amount deposited with the Company as Mark-to-Market Losses “MTM Losses” at the rate paid by the respective banks after adjusting 50% Mark-to-Market Profit disbursed against MTM Losses.
Moreover, effective from May 11, 2020 following new Report/ download shall be available in RMS system;
a) DFC Daily Retain Profit Report
b) DFC Daily Retain Profit Download
For Designated Settling Banks of NCCPL:
Further, bank cash collection reversal screen is available to banks on a daily basis after collection of MTM Losses demand on RMS system and following new Report has been developed for banks;
a. DFC Bank Retain Profit Reversal Report
Press Release
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