The access to Triparty Repo Dealing shall be provided through TREPS, an Electronic Trading Platform (ETP) authorized by RBI.
CCIL will act as a Tri-Party Repo Agent for the purpose of Collateral Management including securities settlement of Tri-Party Repo trades.
CCIL will act as a Central Counterparty (CCP) for all Tri-Party Repo trades received by it from ClearCorp Dealing Systems (India) Ltd. and shall undertake Securities and Funds settlement of all Tri – Party Repo trades under its guaranteed settlement ambit.
Dealing – Tri- Party Repo Dealing System
The Tri-Party Repo Dealing System (Screen Based Order Matching System with pre-trade and post-trade anonymity) will be provided by Clearcorp, a wholly owned subsidiary of CCIL.
RBI INFINET members will access the dealing system through INFINET network. Other REPO eligible entities i.e Constituents introduced to TREPS by Clearing Member shall access TREPS through INTERNET.
Dealing System of Clearcorp shall receive Borrow Limits and Initial Margin details from CCIL for each Member including Constituent. Borrow Limits shall be based on eligible collaterals contributed by respective Member/Constituents.
Members shall be enabled to place borrow / lend orders only for same day (T+0) and/or next business day (T+1) 1st leg settlement. All borrow and / or lend orders shall be accepted by the dealing system provided sufficient Borrow Limits and Initial Margin are available for the Member.
Member’s Borrow Limit and/or Initial margin shall be blocked at the time of placement of each order.
Borrow Limit blocking at the time of order placement shall be equal to the 2nd leg repayable amount of the borrower;
Tri-Party Repo Borrow and Lend Order matching shall be on Interest rate time priority. i.e. Borrow order with the highest interest shall be best borrow order to match and lend order with the lowest interest rate shall be best lend order to match in the system. In case there is more than one order at the same interest rate, the order that is received by the system first shall be the best order for matching on the basis of time priority.
The order matching shall be for amount receivable by the lender and repayable by the borrower on the 2nd leg of the trade. Accordingly the 1st leg settlement consideration will be arrived at on repo tenor and traded interest rate.
Members can square off the trades (i.e. borrow trade can be squared off by lend and vice a versa) wherein the 2nd leg settlement date of the squaring off trade is the same business date as 2nd leg settlement date of original trade.
All the trades will flow to CCIL’s Securities Segment for settlement. CCIL shall settle Securities and Funds as a Tri-Party Repo Agent and as a Central Counter Party.