compliance guide - MCX

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Compliance Guide‣ Register of loans‣ Register of Investment.‣ Register of Charges.‣ Register of Director’s Shareholding‣ Minutes of Board / Committee meetings, etc.2 Records in Soft Forms/ SystemsWith computerization of Members' back office operations, some of these accounts and recordsmay be maintained by the Members in their Systems. Hence, the members are required toensure the reliability of such system and provide the access of such systems to theExchange/FMC officials and/ or inspection team appointed by them if so demanded. Further themember should ensure to take and maintain the back up of the records from time to time andalso the backoffice software should be protected against any unauthorized access or threat byinstalling anti-virus software.2.1 Register of TransactionsAll Members are required to maintain a register of transaction, which contains details of alltrades transacted by them. This is a basic record, which each Member is required to maintainregularly on day-to-day basis. It contains the details regarding the name of commodity, name ofthe client on whose behalf the deals have been done, rate and quantity of commodity bought orsold. These details are maintained date-wise and include transactions related to both –‣ Member’s own business on the Exchange‣ Member’s business on the Exchange on behalf of clientsThe member should ensure that all the transactions are recorded in the said register.2.2 Client LedgerAs per Circular No. <strong>MCX</strong>/357/2006 dated September 02, 2006, every Member of the Exchange isrequired to segregate and maintain Exchange-wise client ledger.This ledger contains the details of the bills raised by the Member on the clients and the paymentreceived from or made to them for trade executed and /or any other charges debited byMember to clients. The Member must ensure that there has been no delay in making paymentof funds / delivering commodities to the clients.If the Member happens to have membership of more than one Exchange in the commodityderivatives market then the Member must ensure that receipts and payments from one accountand debits from another, solely for the purpose of convenience should not be done.- 16 -
Compliance GuideMembers must ensure that no adjustment of funds is made between commodities market andequities segment membership held under sister/associate concerns.Members are required to ensure that separate ledgers are maintained for business done byClients’ on Commodities Futures Exchange and National Commodity SpotExchange.2.3 Bank BookAll Members are required to maintain bank book for different bank accounts including ownaccount, client account, settlement account as opened by the Member. It is mandatory for themember to prepare the Bank reconciliation statement.2.4 Cash BookAll Members are required to maintain cash book. Member’s attention is also drawn towardscircular no. <strong>MCX</strong>/COMP/401/2009 dated October 01, 2009, wherein it is stated that membersshould not accept cash from the clients whether against obligation or as margin money fortrading in commodity derivatives.2.5 Margin Deposit BookThe Members are required to maintain a margin deposit book wherein details of all the marginscollected from the clients are recorded. Margin Deposits received by Members from their clientsin any form are required to be accounted for and maintained separately in segregated accountsand should be used solely for the benefit of the respective clients’ positions.2.6 Trade Log and Order LogMembers are required to download and save, on a daily basis, the files containing details of theorders placed and the trades executed by them during the entire trading session of the day,available at their Trading Work Stations (TWS) through File Transfer Protocol (FTP) at the end ofthe trading session.2.7 Order BookMaintenance of order log as mentioned above will be construed as maintenance of order book.2.8 Trade FilesTrade file is downloaded by the Member from the Exchange on daily basis. This file shows thedetails of all the transactions executed by a Member across all his terminals for a particulartrading day. It shows Trade date, trade no., order no., time of execution of a trade, quantity,rate, commodity code, Client ID etc.- 17 -
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