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 .|
|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