Intraday Profit & Loss Trial Balance
| Purpose | For market financial security, TAIFEX performs profit & loss trial balance calculations on an intraday basis utilizing market prices or the daily settlement prices , enabling TAIFEX to monitor the status of a clearing member’s margin during trading hours. If the remaining margin balance of a clearing member is below the margin requirement, TAIFEX issues an intraday margin call to the member . |
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| Timeframe for calculating intraday profit & loss | TAIFEX executes intraday mark-to-market processing during trading hours at several periods throughout the business day (9:30 a.m. to 9:40 a.m., 11:00 a.m. to 11:10 a.m., and 12:30 p.m. to 12:40 p.m., and 3:00 p.m. to 3:10 p.m.) to calculate required margins for clearing members.
TAIFEX calculates the profit & loss on the balance of the open positions of all clearing members during the trading period. Profits & losses are classified as either transaction profits & losses or position profits & losses. On the final settlement day, the settlement profit & loss is incorporated into the profits & losses calculation. |
| Position / profit & loss calculations | TAIFEX calculates intraday profit & loss using market prices or the daily settlement prices. It calculates the margin requirements and account balances of each clearing member at the same time. |
| Prices for trial balance calculation | TAIFEX does not actively notify clearing members of the prices used in its intraday profit & loss calculations, but accepts queries concerning those prices from clearing members. |
| Special circumstances | In volatile markets, TAIFEX may carry out multiple intraday profit & loss calculations based on market prices, and may also calculate profits & losses based on specified prices in order to reduce market risk by understanding the profit & loss status of clearing members and controlling their position risks in advance. If intraday profit & loss calculations show that a clearing member has insufficient margin, the deficit must be made up within the timeframe specified by TAIFEX. (For details, please refer to the “Intraday Margin Calls” section.) |
| Margin call procedures
(flow chart) |
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