Clearing Corporation of India Limited (CCIL)
Reviewed by Aug 27, 2020| Updated on
Introduction to Clearing Corporation of India Limited (CCIL)
The Clearing Corporation of India Ltd was established in April 2001 to render guaranteed clearing and settlement functions concerning transactions in G-Secs, money, derivative markets, and foreign exchange.
The establishment of guaranteed clearing and settlement led to substantial advances in transparency, market efficiency, liquidity and risk management/measuring practices in these markets, along with additional benefits such as operating risk and reduced settlement, savings with respect to settlement costs, etc.
CCIL also offers a non-guaranteed settlement concerning cross-currency transactions and Rupee interest rate derivatives via CLS Bank.
CCIL's compliance to the stringent principles governing its operations as a Financial Market Infrastructure led to its recognition by Reserve Bank of India as a Qualified Central Counterparty (QCCP) in 2014. It also established a Trade Repository for enabling financial institutions to report their transactions via OTC derivatives.
Understanding CCIL in Detail
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, via its subsidiary Legal Entity Identifiers India Limited, is the Local Operating Unit (LOU) for releasing globally compatible Legal Entity Identifiers (LEIs) in the Indian financial market.
As on today, CCIL is the Calculation Agent for few of the big benchmarks utilised by the market under the backing of the Benchmark Administrator, Financial Benchmarks India Limited (FBIL).
CCIL obtained certification ISO / IEC 27001:2013 from DNV GL in 2015 to protect its information properties. CCIL, through its publications and website updates, disseminates information and data on CCIL activities and financial markets.
Over the years, CCIL has grown with the rising paradigms of the financial system to take on various positions in the financial industry. With the help of its wholly owned subsidiary, the Clearcorp Dealing Systems Limited (CDSL), CCIL has launched various platforms for the electronic execution of transactions in different market segments.