Cash Market Margin Overview

Cash Market Margin Overview

Daily Margin Settlement Advice

ASX Clear generates a Clearing Participant’s daily margin obligations as part of End of Day processing and a Margin Settlement Advice is sent to the Clearing Participant from the CSP through the Daily Margin Settlement Advice Process, indicated by a Notification Type of End of Day (EDAY). The Margin Settlement Advice enables the Clearing Participant to determine their required margin settlement cash flow for that business day, as the advice will include all cash balances, collateral and margin details.

Where ASX Clear calls additional margin in the morning prior to settlement or another event causes the margin or collateral numbers to change prior to settlement, they will manually amend the Margin Settlement Advice. The CSP will send this updated Margin Settlement Advice to the Clearing Participant, indicated by a Notification Type of Update to End of Day (UEDA).

Change Margin Settlement Amount

To manage their daily margin obligations, a Clearing Participant may request a change in the Margin Settlement Amount through the Change Margin Settlement Amount Process by:

  • increasing their excess cash through the lodgement of funds, whereby a daily margin with a resultant cash shortage will be covered; or

  • decreasing their excess cash through the return of funds, providing the funds are not required for any Cash Market Margining (CMM) already calculated.

When changing their Margin Settlement Amount, a Clearing Participant is required to submit a Margin Settlement Amount Change Request prior to the cut-off time* with a new Margin Settlement Amount which will, where accepted by ASX Clear, override any previous instruction or standing instruction and apply to the immediate CMM settlement only. Where ASX Clear rejects the Margin Settlement Amount Change Request, no change to the Margin Settlement Amount will be performed.

*ASX Clear may reject a Margin Settlement Amount Change Request if it is not submitted prior to the margin settlement cut-off time (approximately 9:15am).