The Depository Trust & Clearing Corporation (DTCC) and The Clearing Corporation of India Limited (CCIL) have signed a Memorandum of Understanding (MOU) aimed at promoting closer collaboration between the two market infrastructure organizations.
The MOU provides a framework for cooperation between DTCC and CCIL senior management and staff on projects of mutual interest. It is also intended to help promote cross-border investment and broaden the opportunities for discussion on such issues as risk management, business continuity, reducing customer costs and technology capacity planning.
"As a central counterparty for foreign exchange, government securities and repos in India, CCIL plays a critical role in this fast-growing market," said Donald F. Donahue, DTCC Chairman and Chief Executive Officer. "We are pleased to establish these ties with CCIL, and look forward to fostering a dialogue that contributes to a secure, efficient and sound global trading environment."
The agreement concludes months of discussion between CCIL and DTCC and formalizes a structure for more frequent visits and the sharing of ideas to improve business operating models on both sides.
"CCIL's MOU with DTCC represents an extension of our already mutually beneficial working relationship," said Dr. R.H. Patil, Chairman, CCIL. "We share the common goal of reducing risk and enhancing operating efficiency for our clients and the global marketplace. The MOU demonstrates our commitment to strengthening our communications channels and sharing insights on our respective markets."
This collaboration with CCIL is the third such information-sharing agreement that DTCC has signed with securities infrastructure organizations in India. DTCC also has MOUs with India's National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL).
About CCIL
The Clearing Corporation of India Ltd. (CCIL) was set up in April, 2001 to provide clearing and settlement for transactions in money, government securities and foreign exchange. CCIL's prime objective is to improve efficiency in the transaction settlement process, insulate the financial system from shocks emanating from operations related issues, and undertake other related activities to help broaden and deepen India's money, debt and forex markets.
CCIL commenced operations on February 15, 2002 when the Negotiated Dealing System (NDS) of RBI went live and started settling forex transactions in November 2002. The firm launched the Collateralised Borrowing and Lending Obligation (CBLO), a money market product based on Gilts as collaterals, in January 2003. CCIL has started the settlement of cross-currency deals through the CLS Bank from April 6, 2005. At the request of RBI, CCIL developed and currently manages the NDS-OM and NDS-CALL electronic trading platforms for trading government securities and call money through its subsidiary Clearcorp Dealing Systems (India) Ltd. It also developed the NDS-Auction module for Treasury Bills auction for RBI. CCDL owns the forex trading platform "FX-CLEAR".
CCIL has introduced many innovative products/tools like ZCYC, Bond and T-Bills indices, Sovereign Yield Curve, Benchmark reference rates like CCIL-MIBOR/MIBID and CCBOR/CCBID, etc. For more information on CCIL, visit www.ccilindia.com.
About DTCC
The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, money-market instruments, government and mortgage-backed securities and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for 2.8 million securities issues from the United States and 100 other countries and territories, valued at $36 trillion. Last year, DTCC settled more than $1.5 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.
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