Real Time Margining

The Exposure Limits (Initial Margin) available to any member are monitored on
real time basis. The initial margin limits calculated by SPAN based margining
system are utilized/blocked immediately on execution of any trade.
The members are alerted at three different levels of utilization, namely
reaching 60%, 75% and 90% margin utilization. The initial Margin includes
SPAN margins and such other additional margins that are specified by the
Exchange from time to time.

The members are placed in "Square-off Mode", upon reaching 100% utilization
of their margin limits , after which these members can initiate only such
trades which would reduce their open positions.

Mark-to-Mark-to-Market Loss Monitoring - Marking to market of positions
held by each Member is carried out on a real-time basis by comparing the
difference between the previous day's closing price and the last trade price
on the DGCX market. As soon as the MTM losses reach 75% of total Clearing
Commitment deposited by the Member, the member goes off into "Square-off Mode".