What changed
The effective date for CDS guidelines, originally set for October 24, 2011, has been moved to end-November 2011. The exact date will be notified later. The delay is due to pending infrastructure like trade repository, documentation, and CDS curve publication, plus market queries on operational aspects.
What it means for you
Banks and lenders get additional time to prepare for CDS trading, including understanding documentation and valuation norms. The delay signals RBI's focus on robust institutional framework before launch. Market participants should use this period to finalise internal systems and clarify operational doubts.
What you must do
- Review the May 2011 CDS guidelines and assess readiness for November 2011 launch.
- Engage with trade repository and documentation teams to ensure compliance by new deadline.
- Prepare internal training on CDS valuation and contract standardisation.
- Submit any pending clarifications to RBI promptly to avoid last-minute issues.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Standalone Primary Dealers, Non-Banking Financial Companies
Why was the CDS operationalisation date changed?
RBI cited the need to complete infrastructure like trade repository, documentation, and CDS curve publication, plus market participants requested clarifications on operational aspects.
What is the new effective date for CDS guidelines?
The guidelines will be operationalised by end-November 2011. The exact date will be notified separately.
Who is impacted by this change?
All scheduled commercial banks (excluding RRBs), standalone primary dealers, and non-banking financial companies that were to start CDS trading.