ARG COMPLIANCE MANUAL - Rathi Online

) The Exchange by default shall not permit Pro-Account facility if the approval is not obtainedwithin the stipulated time.9. INTERNET BASED TRADING (IBT)As per Circulars no.: MCX/28/2004 dated May 7, 2004 the Members are advisedto comply with guidelines such as Network Security, Risk Management, Ordermatching etc.Further, the Exchange has come up with the Circular no. MCX/26/2004 dated April29, 2004 and MCX/CTCL/042/2007 dated January 31, 2007 for use to Internet basedtrading for expanding Members‟ Trading terminal.10. SUB-BROKER OF MEMBER10.1 Execution of Member-Sub broker AgreementMembers of the Exchange desirous of appointing sub-brokers for expanding theirbusiness must execute an agreement with such sub-brokers/ franchises (formatprescribed in Circular No. MCX/MCX/056/2004 dated July 09, 2004 and a copyof such agreement shall be made available to the Exchange, as and when requiredby the Exchange.a) Member has to ensure compliance by its sub-broker in accordance withthe Rules, Bye-Laws, Business Rules, and Circulars etc. of the Exchangeand the requirements of FMC from time to time.b) Member has to maintain separate records including accounts in respect ofthe dealing with futures contract entered into on behalf of the sub-brokersand preserved for the prescribed period in respect of the Head Office andbranches.c) Member has to ensure the settlement of all deals which is entered into byhim even through the orders in respect of the deals may have originatedfrom its sub-Member.d) Member has to ensure that its sub-broker may represent himself only as asub-broker of the respective Member.e) Member has to ensure that the total brokerage (including the share ofbrokerage of the Member and the sub-broker) payable by the client of itssub-broker does not exceed the maximum brokerage (currently) 1% incase of non-delivery transactions and 2% plus expenses in case oftransactions relating into delivery) exclusive of statutory levies.f) The registered sub-Members have not extended /eligible to any of therights and / or privilege that are extended to the Members by theExchange.g) A sub-Member should affiliate with only one Member of the MCX.However, he may affiliate with the registered Member of anotherrecognized Commodity Exchange.Compliance Guide204