Clearing Corporation to be repository for interest rate and forex derivatives

The Clearing Corporation of India Limited (CCIL) will be the designated repository of interest rate and forex derivative transactions until a separate entity for repository services is set up, the Reserve Bank of India (RBI) said in a notification today.

The repository services will, however, in due course, be undertaken by a separate entity subject to economic viability, RBI said, adding that it would help segregate the repository activity from clearing and settlement activity and ensure better governance and compliance with standards.

Dealers should report all interbank forex forward transactions to CCIL, which already has a platform for this purpose and is mandated by the Reserve Bank of India.

Dealers have also to mandatorily report forward transactions and swaps between banks and their clients beyond some threshold, say, $100,000, to CCIL with adequate safeguards with regard to confidentiality.

All interbank forex options contracts, including cross currency, should be reported to CCIL.

Option contracts between banks and their clients beyond a threshold will also have to be reported to CCIL with necessary safeguards, RBI said.
 
The present system of reporting interbank interest rate swaps (IRS) and forward rate agreement (FRA) transactions to CCIL will be formalised as reporting to a trade repository (TR) under the new regulations, the central bank said.