【To Investors】The amount of the Initial Margin on financial derivatives will be raised.
2020/07/21
With regard to financial derivatives, in order to enhance risk management, JSCC will review the operational procedures for SPAN parameters for calculation of initial margin (SPAN Risk) from Monday, July 27, 2020 (note). The amount of the initial margin which submitted by securities companies will be raised step by step as follows.
| SPAN Parameter Application Period | SPAN Parameter to Apply |
|---|---|
| From July 27 (Mon.) through Aug. 14, 2020 (Fri.) (Period of Transitional Measures) |
Value obtained by multiplying the value obtained through new method by 0.8 (on the last business day of the previous week or at the time of ad hoc revision) |
| From Aug. 17 (Mon.) through Sept. 11, 2020 (Fri.) (Period of Transitional Measures) |
Value obtained by multiplying the value obtained through new method by 0.9 (on the last business day of the previous week or at the time of ad hoc revision) |
| After Sept. 14, 2020 (Mon.) (New Method to Apply) |
Value obtained through new method (on the last business day of the previous week or at the time of ad hoc revision) |
As a result of this revision, the amount of initial margin that investors are required to submit to securities companies will increase. Therefore, we would appreciate investors to pay close attention to your position management.
（note）For details on Operational Procedures for Setting SPAN Parameters after the revision which will be effective from Monday, July 27, 2020, please refer to the past guidance below. Link
