Settlement Procedure

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.

All matched forward trades with a residual maturity of upto 13 months are eligible for guaranteed settlement under Forex Forward segment. The trades received from members are validated and matched. Matched trades supported by adequate margins are guaranteed for settlement. Trades not supported by margins (by either or both counterparties) are kept “Pending” with daily margin check till S-3 day. Novation occurs at the point in time when the trade is accepted for guaranteed settlement by CCIL. Final settlement of the trades happens through the USD/INR segment. On S-2 day, the net position of each member is computed for all underlying trades accepted for guaranteed settlement for the relevant settlement date. Such net position arising out of guaranteed trades is moved to the USD-INR segment and subjected to exposure check for limit check in the USD-INR segment.

CCIL has commenced Portfolio compression cycle for cleared forward trades from March, 2015.