The group recognises that it is easier to introduce stringent risk containment measures in the derivatives market which are being set up from scratch. However, it does not make sense to have laxer risk containment measures in the cash market than in the derivatives market. The group recommends that the basic ideas enshrined in this report be extended to the cash market. In particular:

1. the margins in the cash market should be based on a 99% VaR. As an interim measure, the margins could be twice that in the index futures market since individual securities are roughly twice as volatile as the index. Exposure limits could also be commensurately lower than in the derivatives market.
2. the recommendations on the computation of liquid net worth and the up front margins could be readily applied to the cash market.