Multi-asset-class FCMs that use size-based risk limits (Trade Size Limit, Commodity Position Limit, Contract Position Limit) and want to enforce FCM Minimums for those limits (which are actually the highest allowed value for that FCM’s accounts) face a challenge because the current “Minimum FCM Risk Parameters” functionality only allows setting a single limit value for each limit
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A reasonable size-based limit value for futures may be 100, but for FX it may be 10,000,000 and for equities it may be 10,000.
A new FCMs->Min FCM Market Limits page has been added that allows overriding default FCM min values for the size-based risk limits (Trade Size Limit, Commodity Position Limit, and Contract Position Limit) at exchange and/or product level.
This new page works in conjunction with the Minimum FCM Risk Parameters page (shown below). Whatever is enforced on the Minimum FCM Risk Parameters page can be overwritten or fine-tuned on the Minimum FCM Market Limits page. This can be done on an All Commodities level down to a contract level. Below, we see that Trade Size Limit of 100 is enforced.
Opening up the Min FCM Market Limits you can set limits for All Commodities by selecting All Commodities and then the appropriate drop-down menu in the Values column, then select “limited” and enter a value. Then, click “Save” at the bottom of the page.
You can set a limit for a symbol by searching for the symbol (use lower case) and then the appropriate dropdown menu in the Value column, select “limited” and enter in the value. Then, click “Save” at the bottom of the page.
You can expand the list of instruments by clicking on the “+” icon and in this case, “Future” was selected and a Trade Size Limit of 125 was set by selecting “limited” in the drop–down menu. Originally, the Trade Size Limit was 100, which was inherited from the Minimum FCM Risk Parameters page. Always click “Save” at the bottom of the page to update CAST.
Permissions associated with this page
CAST Users > CAST Permissions > Risk Management > FCM > View Minimum FCM Risk Parameters
CAST Users > CAST Permissions > Risk Management > FCM > Modify Minimum FCM Risk Parameters