What do these MTF funds statement entries mean?

The funds statement is updated till the previous trading day. The entries are as follows.

Net settlement for equity with settlement number reflects charges for MTF buy and sell transactions based on the settlement number. In the MTF ledger, the full value of the MTF buy is debited. This ensures contract note charges are posted correctly for executed trades.

Initial margin blocked for MTF shows the margin debited from the client based on requirements such as VAR (Value at Risk) and ELM (Extreme Loss Margin). The same margin is credited in the MTF ledger upon blocking. This represents the upfront margin required for initiating an MTF trade.

Initial margin reversed for MTF indicates that the margin blocked at the time of the MTF buy is reversed when the position exits. In the MTF ledger, the margin credited earlier is also reversed. This ensures no unnecessary funds remain blocked after the trade is completed.

MTM loss margin blocked for MTF involves Mark-to-Market losses, which are blocked daily and recorded based on the average position. This loss is moved from the EQ ledger and debited in the MTF ledger. These entries reflect the daily MTM losses incurred on MTF positions and are essential for ensuring margin adequacy.

MTM loss margin reversed for MTF reflects the reversal of previous MTM losses, which are credited in the EQ ledger. The corresponding MTM obligation is also reversed, resulting in a credit to the MTF ledger. These reversals reflect the settlement of MTM losses or changes in daily margin requirements.

MTF pledge charges for M&MFIN are visible only when a pledge is created for an MTF position. The MTF ledger includes the obligation minus the initial margin, with a daily charge (e.g., 0.04%). Calculations can be based on either the funded amount or the absolute opening balance of the MTF ledger plus the previous day’s MTM received. These charges ensure compliance with MTF obligations for pledged securities.

Interest for MTF funded value is debited for the funded amount on specific dates (e.g., 2024-10-15 in this example). This represents the cost of using MTF funds for trading and is charged periodically.

This breakdown provides a clear understanding of how MTF fund statement entries reflect the flow of funds, margin adjustments, and related charges.