What changed
Previously, only interbank IRS and FRA trades were reported to CCIL; client trades were excluded. Now, RBI has extended reporting to include all client-level IRS transactions. Banks and PDs must submit these in a prescribed format via hard and soft copy by the second day of the following week.
What it means for you
This move gives RBI a complete picture of the OTC interest rate derivatives market, including client activity. For banks, it adds a weekly compliance burden but improves market transparency and regulatory oversight. Existing CCIL reporting remains unchanged.
What you must do
- Set up a process to capture all client IRS transactions in the specified format.
- Submit the first report for the week ending October 16, 2009, by October 18, 2009.
- Ensure both hard copy and soft copy (email) are sent to the Chief General Manager, Financial Markets Department.
- Maintain separate reporting for interbank trades to CCIL as before.
Who it affects
All scheduled commercial banks (excluding RRBs and LABs), Primary dealers
What transactions need to be reported under this circular?
All client-level interest rate swap (IRS) transactions entered into by banks and primary dealers must be reported weekly.
What is the deadline for submitting the report?
The report must be submitted by the second day of the following week to which it pertains, in both hard and soft copy.
Does this change existing reporting to CCIL?
No, the existing reporting of interbank trades to CCIL continues unchanged. This is an additional requirement for client trades.