Interoperability among Clearing Corporations

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.... interoperability among CCPs would lead to efficient allocation of capital for the market participants, thereby saving on costs as well as provide better execution of trades. 2. An expert Committee constituted by SEBI, under the Chairmanship of Shri K V Kamath, had, inter alia, examined the 'Viability of Interoperability between different Clearing Corporations'. Thereafter, proposals on Interoperability, received from CCPs, were placed before the Secondary Market Advisory Committee (SMAC) of SEBI. As recommended by SMAC, three working sub-groups pertaining to relevant subjects viz. Risk Management, Technology, and Finance and Taxation were constituted comprising academicians, market participants and relevant stakeholders to examine the r....

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....erivatives) shall be made available under the interoperability framework. 5.2. Interoperable links among CCPs (1) The recognised clearing corporations shall establish peer-to-peer link for ensuring interoperability. A CCP shall maintain special arrangements with another CCP and shall not be subjected to normal participant (membership) rules. Risk management between the CCPs shall be based on a bilaterally approved framework and shall ensure coverage of inter-CCP exposures. CCPs shall exchange margins and other financial resources on a reciprocal basis based on mutually agreed margining models. (2) However, SEBI, in certain cases, may require a CCP to establish participant link for interoperability. In such cases the CCP concerned s....

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....lar CIR/MRD/DRMNP/9/2013 dated March 20, 2013 on "Corporate bonds and Government securities as collateral" shall be applicable for inter-CCP transactions. 5.4. Inter CCP Settlement The CCPs shall undertake multilateral netting to create inter-CCP net obligations and exchange funds and securities on a net basis. The pay-in and pay-out shall be completed as per the settlement schedule prescribed vide SEBI Circular MRD/DoP/SE/Dep/Cir-18/2005 dated September 02, 2005 on "Revised Activity schedule for T+2 rolling settlement". 5.5. CCP-Trading Venue Link (1) In an interoperable arrangement, the stock exchange and the CCP may not be located at same venue. Accordingly, to ensure real time flow of information between the stock exchange (....

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....s and Clearing Corporations shall comply with the provisions under Para-2 of SEBI Circular MRD/DoP/SE/Cir-14/2009 dated October 14, 2009 on "Revision of transaction charges by the stock exchanges". 5.8. Dispute Resolution The Conflict Resolution Committee, as prescribed vide SBI Circular SEBI/HO/MRD/DSA/CIR/P/2017/9 dated January 27, 2017 on "Procedures for Exchange Listing Control Mechanism" shall address disputes, among CCPs and Stock Exchanges, arising out of interoperability. 5.9. Inter-CCP Agreement (1) Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 prescribes that "...in case a recognised stock exchange enters into an arrangement with more than one recognised Clearing Corpor....