The CSE put in place a comprehensive risk management system, which is constantly monitored to pre-empt any trading failures.
It collect margins from members to address the problems related to the volatile trading activities as well as to settlement failure.
CSE imposes margin requirements on the member's additional trade exposure. Additional trade exposure means the amount of the aggregate
(gross) trade exposure exceeding the free limit for each member. Aggregate (gross) trade exposure is computed on the total buys and total
sales position of a member at any point of time during a trading day. The free limit on the amount of the gross trade exposure to trade in
CSE is taka one crore per trading day.
The member shall pay the margins in cash, bank guarantee or FDRs etc. within one hour of exceeding the free limit on the amount of the
gross trade exposure. As per Chittagong Stock Exchange (Member's Margin) Regulations,2000 the rate of depositing the member's margin with
the clearing house on the additional trade exposure are as follows:-
The trading right of the members who exceeds the free limit without depositing margin to CSE within the prescribed time shall remain suspended.
The Exchange can realises the value of the margin instruments and adjusts the amount so realised if member fails to settle his trade with the clearing house on the settlement day.
The member shall be liable to pay the shortfall, if any, including the costs, interest, charges and expenses involved in the realisation process, within three days of the written notice of demand issued to him by the Exchange.