Clearing & Settlement:
Triparty Repo system
operates on a Straight through Processing (STP) environment. The trade flows
from ClearCorp’s “TREPS” i.e Triparty Repo Dealing System seamlessly to CCIL
for Clearing and Settlement. The trades received by CCIL are novated and netted
for settlement. A single obligation is generated for each member for each
settlement date by netting trades received for settlement on that business date,
with net borrowing / borrowing repayment/ amount payable towards lending/
lending repayment receivable for the same business date.
Settlement Obligations:
The obligations determined for funds
settlement of members is the netted position arising from Triparty Repo trades,
market repo and outright trades. For those members who maintain a current account with
Designated Settlement Bank (DSB) funds settlement is achieved at Settlement
Bank and for those members who maintain current account at RBI funds settlement
is achieved at RBI. The securities deliverable towards Triparty Repo borrowing
and receivable for Tri party Repo lending, is determined based on the net
borrowing/ lending outstanding for respective tenor in Triparty Repo. The
securities deliverable towards borrowing are debited from the member’s GILT
account with CCIL, immediately after closure of dealing session
for T+0 settlement and securities receivable by lenders are credited to the lenders GILT account with
CCIL after the Funds settlement is
completed.
The settlement bank, shall process the
instructions and send confirmations electronically.