According to a press release issued by FMC, the limit on open positions for members and clients of the three national exchanges would be higher of the two; as indicated by the regulator or 20% of the market-wide open position.
Exchanges would be at the liberty to prescribe lower limits on open positions than those prescribed by FMC.
For the purpose of calculating limit on open position across deliveries, all long and short positions will be added up separately. Higher of the longs and shorts across deliveries will be taken into consideration.
For members position, client positions will be determined as stated above and will be added without setting off among themselves as also against proprietary position of the member. This means that proprietary position of the member will be treated as a client position.
FMC also decided to fix price limit of 6% (upper or lower) for the same 24 commodities. However, the exchanges will be able to prescribe a lower price limit subject to FMC intimation.