Trading Member (TM) is a member of NMCEIL who has the right to execute transactions in the trading system of the exchange and the right to have contracts in its own name. The TM can also act as a Broker. As a Broker, he can deal on behalf of the clients (Registered Non-members). All the trades have to be executed only through the Trading facilities provided by the Exchange. TM will settle the transactions through Clearing Members (Trading & Clearing Members or Institutional Clearing Members). TM cum Broker is required to maintain a separate account for client transactions and is required to maintain the margin deposit and money belonging to clients in segregated accounts. TMs are responsible for all the transactions of their clients. TM will clear their Trades through Clearing Members (TCMs or ICMs). A TM will be allowed to have clearing relationship with only one TCM or ICM at any point of time. The obligations of the TMs are monitored by the associated TCM or ICM. If the limits are breached by a TM, they will not be allowed to do further trading unless the limits are reset on receipt of additional deposits.
To provide continuous liquidity in the market, the TMs will be acting as Jobbers in the Market. However, there are no special privileges or obligations attached to this function of TMs. TMs will compete in the market place along with customers' orders to improve the price discovery in the market. TMs will make use of the Order Based Trading System of the exchange to provide continuous stream of order flows in the market.

Trading cum Clearing Member (TCM) is a member of NMCEIL who has the right to execute transactions in the trading system of the exchange like a TM. TCM also a right to clear the transactions in contracts executed in NMCEIL either on its own behalf or on behalf of other TMs. TCMs will be responsible to NMCEIL for all the obligations (margins, settlement obligations etc) of TMs on whose behalf they have agreed to clear the trades. NMCEIL will debit the banking account of the TCMs for all the obligations of the TMs who are clearing through TCMs. TCMs will enter into Clearing Agreements with their constituent Trading Members. They will also take the required Caution Deposit from the TMs. They will be allowed to set the limits for trading by TMs. TCMs are required to maintain segregated accounts of the all the moneys belonging to TMs on behalf of whom they are clearing the trades. If the clearing limits of TCMs are breached, all the trading members attached to them will be stopped from further trading until the limits are reset on receipt of additional deposits.

The number of TCMs will be limited compared to that of TMs in NMCEIL. TCMs will be located in major towns and have banking accounts with the Designated Clearing Banks who have interface with NMCEIL.

ICM is a member of NMCEIL who has the right to clear transactions done in NMCEIL that are executed in the trading system of the exchange by TMs and their clients who are Registered Non Members with NMCEIL. An ICM does not have the right to have contracts executed in the trading system of NMCEIL. ICMs are professional clearers in the market providing clearing services to the institutional clients. Registered Non-members of NMCEIL who have executed transaction through any TMs can request their ICMs to settle the trade. ICMs therefore can have independent clearing relationship with Registered Non Members exclusive of the trading relationship of Registered Non members with any TMs. If the clearing limits of ICMs are breached, all the trading members attached to them will be stopped from further trading until the limits are reset on receipt of additional deposits. Financial Institutions, Commercial Banks and Corporate Houses who do not have trading interests, but are desirous of providing clearing services to their clients will become ICMs in NMCEIL. NMCEIL proposes to have a maximum of only four ICMs. TCMs will be located in major towns and are expected to have banking accounts with the Designated Clearing Banks who have interface with NMCEIL.
ICMs will be responsible to NMCEIL for all the obligations (margins, settlement obligations etc) of TMs and Registered Non-members on whose behalf they have agreed to clear the trades. NMCEIL will debit the banking account of the ICMs for all the obligations of the TMs and the Registered Non-members who are clearing through TCMs. ICMs will enter into Clearing Agreements with their constituent TMs and Registered Non-members. They will also take the required Caution Deposit from the TMs and Registered Non-members. They will be allowed to set the limits for trading by TMs. ICMs will also confirm the transaction done on behalf of the Registered Non-members once the trade is reported to them by NMCEIL. ICMs are required to maintain segregated accounts of the all the moneys belonging to TMs and Registered Non-members on behalf of whom they are clearing the trades.

Sub-Broker is a Registered member of the NMCEIL who has the right to execute transaction in the trading system of the exchange only through a TM/TCM. Sub Broker enter transactions in NMCEIL through Brokers. Sub Brokers introduce the clients/ Registered Non-members to the Brokers. Sub-Brokers do not have the right to have contracts in their own name. Sub-Brokers will settle the transactions of clients introduced by them, through Brokers, who in turn settle through Clearing Members (TCMs or ICMs). Sub-Brokers will enter into an agreement with the TM/Broker who would provide trading limits to them. Sub-Brokers are also required to obtain registration from NMCEIL/Regulator as prescribed.

A Registered Non-member or non-member client means any person who is registered with the Exchange for the purpose of dealing in commodities through a TM. A Registered Non-member will clear the transaction through TCMs or ICMs. He is a non- member client of TM and hence is not a member of the Exchange. A Registered Non-member has to fulfill such requirements as may be prescribed by the Exchange from time to time. A Registered Non-member has to pay the prescribed subscription to NMCEIL and furnish the required information to NMCEIL. A Registered Non-member is required to enter into an agreement with TCM of the exchange. Every Registered Non-member will be provided a unique Client Identification (Client Id). This client identification will be used in every trade done in NMCEIL.