Segments

1) CCIL offers CCP clearing for Rupee Interest Rate Swaps (IRS) & Forward Rate Agreements (FRA).

a) Instruments covered under IRS and FRA– Fixed/Floating Swaps referenced to MIBOR and MIOIS benchmarks with maximum residual maturity of 10 years.

Following entities are eligible to participate in the CCP Clearing for MIBOR and MIOIS benchmarks.

• Market Makers- All Scheduled Banks, Standalone Primary Dealers (SPDs) and All-India Financial Institutions (AIFIs)
• Non-Retail Entities- Entities regulated by the Reserve Bank of India, Mutual Funds, Insurance Companies, Pension Funds, etc.
• Retail Entities- Corporates, FPI (Foreign Portfolio Investors)/FII (Foreign Institutional Investors), etc. which are eligible to participate in Rupee Interest Rate Derivatives can join as Constituent via Clearing Member Model offered by CCIL for IRS Segment.

The above entities are also eligible to become member of Rupee Derivative Dealing System - ASTROID (please refer to our Clear Corp website for further details) 

b) Interest Rate Swap- Fixed/Floating Swaps referenced to Modified MIFOR (MMFOR) benchmark with maximum residual maturity of 5 years.
AD Category Banks are eligible to participate for the CCP Clearing for INR IRS trades referenced to Modified MIFOR (MMFOR) benchmark.

2) Non-Guaranteed Settlement (NGS) - CCIL also offers multilateral net settlement of cash flows arising out of INR IRS trades on non-guaranteed basis since November 2008. Non-Guaranteed Settlement services are offered to all the eligible INR Benchmarks i.e. MIBOR, MMFOR and MIOIS.

Benefits

Benefits of IRS Guaranteed Settlement

• 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.
• CCIL has been accorded the status of a QCCP – hence reduced capital requirement to the participants.
• Translation of bilateral gross exposure to multi-lateral net exposure on CCIL.
• Waiver of exchange of interbank confirmation for OTC IRS/FRA trades post matching on CCIL platform.
• Significant reduction in liquidity requirement.
• Improved operational efficiencies with reduction in related operational cost.

Benefits of IRS Non-Guaranteed Settlement

• Translation of gross bilateral settlement into multilateral net settlement.
• Significant reduction in liquidity requirement.
• Improved operational efficiencies with reduction in related operational cost.
• Easy reconciliation of portfolio of contracts.
• Waiver of exchange of interbank confirmation for OTC IRS/FRA trades post matching on CCIL platform.