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Each futures commission merchant shall furnish copies of its Risk Exposure Reports to the Commission within five (5) business days of providing such reports to its senior management.
Each futures commission merchant shall maintain records of the persons to whom the risk management policies and procedures were distributed and when they were distributed.
Ramachandra Patil, the NSE's managing director, says that the size of each futures lot, around $6,000 for a one-month contract, makes them affordable.Local mutual funds, hurt by the recent market slump, might also like the hedge that index-futures can offer.
As part of the Risk Management Program, each futures commission merchant shall establish and maintain a risk management unit with sufficient authority; qualified personnel; and financial, operational, and other resources to carry out the risk management program established pursuant to this section.
Each futures contract is standardized and specifies commodity, quality, quantity, delivery date and settlement.
Each futures contract controls 37,500 pounds, enough to make 1.1 million grande Americanos at Starbucks.
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