FAQs

FAQs

Functional FAQs

Please call on 61546412/20/21 or please send us an email at creditrisk@ccilindia.co.in
Margining and Risk Related Matters are handled by the Risk Management Department. They can be contacted as per the contact list attached.
CCIL sends alerts to members through SMS/e-mail as and when their margin utilization from INR Collateral account (MCC) exceeds 75%, 90%, 95% and 100% (margin shortfall) of total MCC value. On receipt of such alert, members are required to review their available balance in MCC and deposit additional funds/eligible securities based on their internal assessment of trades yet to be reported/ traded under various segments. In case alert is for margin shortfall, member has to immediately replenish the shortfall.
Each Clearing segment has a dedicated default fund. Member is required to contribute to default fund of the segment(s) were he is active.
Apart from monthly revision of all segmental default funds, the default fund requirement for all segments is assessed on a daily basis. Default Fund for a particular segment may be revised on the day when daily stress loss results indicate a breach in threshold for calling additional contributions (i.e. 80% of prefunded resources). Here, the prefunded resources comprise member contributed default fund and CCIL’s Skin in the Game i.e. CCIL’s contribution in the default waterfall in respective segments.
Default Fund Quantum is the total size of default fund requirement for the segment, while member wise requirement is the portion of quantum allocated pro rata to members based on their average volumes, initial margin requirements and level of stress loss in their portfolio in past six month.
At each member level, in order to determine the net shortfall and applicability of resultant penal charges, CCIL performs a notional optimization across default funds. However, as best practice, members are requested to make necessary collateral switch across default funds to ensure no deficits prevails at individual segment level default fund.
In case shortfall arises in default fund requirement for Securities / Forex / Forex Forwards or Rupee IRS segment, the residual requirement post notional adjustment of surplus available in other default funds is met from available balance in MCC account of the concerned member, to the extent free balance is available in MCC. However, if the shortfall is in Tri-Party Repo Default Fund, the residual requirement post notional adjustment of surplus in other default funds is met from unutilized initial margin / collateral deposited towards Tri-Party Borrowing Limit (BL).  In case balance in MCC/Triparty BL is inadequate to meet the DF requirement, the residual shortfall will be recorded in respective segmental default fund, to be replenished within the stipulated timelines.
Minimum cash requirement for each segmental default fund is 5% of individual member’s required contribution. On revision of default fund, the cash margin is computed on revised requirements.
"• Cash balance after the withdrawal, may be breaching the 5 % minimum requirement, if the request is processed.
• Surplus balance in default fund contribution in any segment from which the withdrawal is intended is notionally blocked towards deficit in other segment(s)’ default fund requirements.
• Market value of substitute Securities is not adequate to meet the DF requirements.
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"• Size of fund increases with increase in stress losses as reflected in daily stress test.
• Pro-Rata allocation of quantum to a member is based on its average volumes, initial margin requirements and level of stress loss in their portfolio during  the past six months vis-à-vis all other members of the segment
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It could be that one of the counterparty to trade has not reported the deal to CCIL or both counterparties have reported the deals but the economic details are not matching.
It could be that one or both the parties to the trade have inadequate balance in MCC account. Reported trades are kept pending for want of margin, please check the remark field of trade. In case of Forex settlement segment, trade are kept pending also due to inadequate exposure limit.
MTM gain allowed as credit to MCC account will get extinguished with settlement of corresponding trade positions. This will lead to a reduction in available balance in MCC and may result in margin shortfall if such gain was utilized against margin requirements. Hence it is required that such gain movement is checked in advance by the members and MCC account is suitably funded with funds/eligible securities beforehand. CCIL provides details of ‘MTM gain moving out on next day’ in its ‘Margin utilization report’ generated for each segment at the end of previous day.
MTM margin requirement increases if price/ rate movement is adverse. For example, INR depreciation will affect member with net USD sell portfolio in Forex Segment. Such Incremental MTM requirement would be blocked from MCC account.
The member can reset user/password by visiting IRIS site. Facility is provided on home page under ‘Trouble login’ option.
Please send us an email request for the same on IRMS@ccilindia.co.in
Member can reset user/password by visiting IRIS site. Facility is provided on home page under ‘Trouble login’ option.
Please call support on 022-61546421/17 for assistance.
Please contact Risk Management Department on 02261546428 / 68 / 21 / 17 / 14  or refer to MCC Balance Utilisation Report available on reports browser under ‘Risk Management’.

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SR. No Code Segment Select Segment Select Sub Segment From/To Date Tab
1 DFND01 Forex Forward Derivatives Forex Forward as given above Risk
2 DFND02 Rupee IRS - MIBOR Derivatives IRS as given above Risk
3 DFND03 Forex Settlement Spot Forex USDINR as given above Risk
4 DFND04 Triparty Repo Clear Corp Triparty Repo as given above Risk
5 DFND05 Securities Segment Securities Securities as given above Risk
6 DFND06 Rupee IRS - MIFOR Derivatives IRS as given above Risk