InvestorQ : What are the types of risk management techniques that the exchange adopts?
diksha shah made post

What are the types of risk management techniques that the exchange adopts?

Answer
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Anjana Aiyar answered.
2 years ago


A sound risk management system is integral to an efficient settlement system. The NSCCL ensures that trading members’ obligations are commensurate with their net worth. It has put in place a comprehensive risk management system, which is constantly monitored and upgraded to pre-empt market failures. It monitors the track record and performance of members and their net worth; undertakes on-line monitoring of members’ positions and exposure in the market collects margins from members and automatically disables members if the limits are breached. The risk management methods adopted by NSE have brought the Indian stock market in line with the international markets.