Brief Overview:
Exit by transfer, not forced close-out: CCIL’s new framework lets trades, positions and margins move between members with stronger clearing safeguards.
Technical Details:
Key Highlights
1) Transfer and porting framework: Proprietary trades, positions and margins can now move between members.
2) Orderly member exits: Resigning members can transfer portfolios instead of closing out positions, with portfolio compression available for smoother transition.
3) Stronger legal and risk safeguards: Settlement finality and set-off protections extend to compression, default management actions and transferred trades, subject to CCIL oversight and applicable eligibility, risk and margin requirements.
Takeaways:
The framework marks a shift from exit from forced close-outs to seamless transfers — enabling trades and margins to move to eligible members while reinforcing settlement finality, legal certainty and systemic risk safeguards by recognising trade transfers within CCIL’s Bye-Laws and Regulations.
For further details, please see:
CCIL- Amendments to the Bye-Laws and Regulations
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