The Clearing Corporation of India (CCIL) today launched a trade repository for over the counter (OTC) Foreign Exchange Derivatives, which will help bring in greater transparency.
Trade repositories (TR) maintain a centralised electronic database of OTC derivatives transaction data, providing a ringside view of market concentration, which helps in risk reduction.
The repository was launched in presence of RBI deputy governor Subir Gokarn at the CCIL, which facilitates clearing and settlement of transactions in g-secs, money market instruments and foreign exchange products.
CCIL said, the TR will help the RBI in effective monitoring of systemic risk as it gives clarity on trade positions, prices and transaction volumes. It added that the establishment of the TR is in line with a commitment of the G-20 countries following the financial crisis of 2008, wherein every member country reports all OTC derivative contracts to TRs.
CCIL said the TRs will be launched in phases, starting with inter-bank forex forwards and swaps in the US dollar-rupee pair, and then go on to other areas. "The services are being launched in phases to enable banks to ready their systems to report the data to CCIL," it said.