How does CCIL propose to guarantee settlement of trades from Trade Date?
Member banks currently encounter problems in terms of huge outstanding forex exposures in their books and this comes in the way of their doing more trades in the market. Risks on such huge outstanding trades were found to be very high and so were the capital requirements for supporting such trades. These banks expressed the desire that CCIL may start extending its guarantee to these trades from the trade dates itself. A new Forex Forward segment would be created to offer guarantee on such trades from the trade date. Acceptance of such trades will happen through this segment and entire margining and risk management would be taken care of through a separate risk management process being proposed for this segment. Margin requirements for this segment are proposed to be covered through acceptance of Govt. securities and/or INR cash. Trades with maturity of more than 13 months would be taken up for guarantee settlement when the residual maturity comes down to 13 months. Forward Trades repor
