MTF trading journal for trustline securities traders

Trustline MTF, or Margin Trading Facility, allows an eligible client to buy approved equity shares using client margin plus funding provided by Trustline. Trustline's MTF guidelines require funded stocks and collateral to be tracked separately and kept within the broker's margin and risk-management framework.

Trustline's current published MTF guidelines state that outstanding MTF dues carry interest at 18% p.a., compounded at fortnightly rest. Commercial terms can be revised, so the current broker agreement and ledger should remain the source of truth for a live position.

Trustline's published MTF terms say a client may take delivery of shares bought under MTF at any time, but not later than 90 days from the date of funding by paying the outstanding dues. The guidelines also state that dues older than 90 days may be recovered by liquidation of funded shares or collateral.

Trustline states that only SEBI Group I securities are eligible for MTF, and Trustline may further restrict funding to its own approved list. If an approved stock is removed from the eligible list, the client may have to fund the full purchase amount or face liquidation under the broker's terms.

Trustline's guidelines use stock-level risk measures. For Group I stocks available in F&O, the published minimum initial margin is VaR plus three times applicable ELM; for other Group I stocks it is VaR plus five times applicable ELM. Trustline can require a higher margin than the regulatory minimum.

Trustline's current guidelines require funded stocks to be pledged to its Client Securities Margin Funding Account and eligible collateral to its Client Securities Margin Pledge Account using the depository OTP process. Trustline says an eligible position can be shifted into MTF up to T+1 after the required pledge is completed.

Trustline states that if the funded-stock pledge is not initiated by T+1, the position will not be transferred to the MTF segment and will remain in the normal capital-market segment. The resulting debit or dues must then be cleared under the applicable regulatory and Trustline RMS rules.

Trustline marks MTF funded shares and collateral to market daily. Its guidelines say a margin shortfall should be made good immediately after a margin call and, under its own RMS terms, no later than 10:00 AM on the next trading day unless market conditions require faster action.

Trustline's RMS guidelines say positions may be triggered for square-off when MTM loss reaches around approximately 70% of available margin, although the actual execution can happen earlier or later depending on volatility and liquidity. The same guidelines describe alerts around 40%, 60% and 70%.

Trustline's MTF terms require daily margin statements to identify MTF margin and collateral separately. Trustline's website also says clients receive contract notes and daily margin statements and can access reports through the web-based back office.

Yes, subject to eligibility and haircut. Trustline allows applicable margin or shortfall to be covered using cash, cash equivalents or eligible Group I equity securities with the required haircut. Collateral and funded stocks must remain separately identifiable for MTF.

Trustline's published MTF guidelines currently state that the product is available only to resident Indian clients. The guidelines also say MTF is provided for trades executed on NSE or BSE and that POA or DDPI in favour of Trustline is required for the facility.

Track the stock, trade value, client margin, Trustline-funded amount, interest rate, fortnightly financing cycle, funded days, Group I eligibility, margin requirement, pledge status, daily margin changes, MTM alerts, shortfalls, RMS actions and final net P&L. That gives the funded trade a complete capital and risk history.