This article analyses measures to strengthen the equity index derivatives framework for enhanced investor protection and market stability. The derivatives market aids in price discovery, improves liquidity, and helps investors manage risk. The critical areas of focus include:
‣ Upfront Collection of Options Premiums and Margin Verification for Improved Risk Management
‣ Margin Framework and Calendar Spread Adjustments for Derivatives
‣ Strengthening Oversight of Position Limits for Equity Index Derivatives
‣ Updates on the Minimum Contract Size for Index Derivatives
‣ Rationalisation of Weekly Expiry Index Derivatives to Enhance Market Stability
‣ Enhanced Margin Measures for Expiry-Day Trading in Options Contracts
‣ Implications for Brokers in Compliance, Operations, and Market Strategy
