VaR based additional margins on CFS increased to 50 percent

The National Clearing Company of Pakistan Limited (NCCPL) has announced that additional 50 percent VaR based margins would be collected in the form of cash from all CFS Mk-II participants on CFS contracts executed from January 5, 2009.
In a notice issued here on Monday, NCCPL said that the decision would be effective from January 5. The decision was taken in order to further strengthen the risk management on CFS Mk-II transactions and the Securities and Exchange Commission of Pakistan has approved imposition of additional 50 percent of the existing VaR based margin in the form of cash on all new CFS Mk-II contracts.