Segments

CCIL commenced CCP clearing of Forex Forward trades with guarantee from trade date w.e.f. 1st December, 2009 onwards. In June 2014, FEDAI mandated that all inter-bank Forward transaction has to settle through CCIL.

Interbank Forex Forward trades with residual maturity upto 13 months are eligible for guaranteed settlement under Forex Forward Segment. Since February 2021, CCIL has extended the services of CCP clearing in Forex Forward segment to residents such as Corporate and non-resident users such as Foreign Portfolio Investors to avail clearing of USDINR trades through a Clearing Member in the Forex Forward Segment of Clearing Corporation. Spot and Forward trades of Constituents with residual maturity upto 13 months are eligible for clearing under Forex Forward Segment.

CCIL provides Portfolio compression service for cleared forward trades. 

Benefits

Benefits of Forex Forward Clearing include:

• Guarantee from the point of Acceptance. 
• Increase in trading volumes due to guaranteed settlement by CCIL.
• Reduction in counter-party exposure i.e. Risk of  loss  from counterparty default would be minimal due to proper margining for market risk
• Reduced settlement risk, more efficient clearing and settlement system.
• Transparent and reliable valuation of outstanding positions for the market participants.
• Savings on Capital. 
• Reduction in the bilateral exposure of the banks (from gross exposure on the Counterparty banks to Multilateral Net exposure on CCIL)