The Clearing Corporation of India Limited (CCIL) is now designated as ‘Trade Repository’ for the OTC interest rate and Foreign Exchange Contract. The designated trade repository will be regulated and supervised under section 34(2) of the Payment and Settlement Systems Act, 2007 (PSS Act). Being a Financial Market Infrastructure (FMI), the repository would function under “Regulation and Supervision of Financial Market Infrastructures” regulated by RBI.
Clearing Corporation of India Ltd (CCIL) was set up in April 2001 to provide guaranteed clearing and settlement for transactions in G-Secs, money market, derivative markets, and foreign exchange in the country. CCIL acts as a central counterparty in various segments of the financial markets regulated by the RBI viz. the government securities segment, Collateralised Borrowing, and Lending Obligations (CBLO) – a money market instrument, USD-INR, and forex forward segments. The establishment of guaranteed clearing and settlement by the CCIL led to substantial advances in transparency, market efficiency, liquidity, and risk management/measuring practices in the markets, besides benefits of reduced settlement and operating risks, etc. CCIL also provides non-guaranteed settlement in the rupee-denominated interest rate derivatives like the Interest Rate Swaps/Forward Rate Agreement market. Further, it provides non-guaranteed settlement of cross-currency trades to banks in India through Continuous Linked Settlement (CLS) bank by acting as a third party member of a CLS Bank settlement member. CCIL is also a trade repository for every OTC transaction in interest rate, Forex, and credit derivative transactions. Portfolio compression is also undertaken on a semi-annual basis for unpaid cleared Forex forward derivative transactions and Rupee Interest Rate Swaps.
CCIL has launched various platforms for the electronic execution of transactions in different market segments through its subsidiary Clearcorp Dealing Systems Limited (CDSL). The Legal Entity Identifiers India Limited which is a subsidiary of CCIL, is the Local Operating Unit (LOU) for releasing globally compatible Legal Entity Identifiers (LEIs) in the Indian financial market. To date CCIL is also the calculation agent for many benchmarks utilised by the market under the backing of the Benchmark Administrator, Financial Benchmarks India Limited (FBIL).
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