What changed
RBI mandated that all CDS trades in corporate bonds be reported to the CCIL trade repository (CORE) instead of just any reporting platform. The 30-minute reporting window remains unchanged from the earlier May 2011 guidelines.
What it means for you
Banks and other market makers must ensure their trade capture systems are integrated with CCIL's CORE platform for real-time or near-real-time reporting. Non-compliance could attract regulatory scrutiny, and the move aims to improve transparency and risk monitoring in the CDS market.
What you must do
- Integrate your trade reporting systems with CCIL's CORE platform before December 1, 2011.
- Ensure all CDS trades in corporate bonds are reported within 30 minutes of execution.
- Train trading and operations teams on the new reporting workflow and timelines.
- Review and update internal compliance checklists to align with the CCIL-specific mandate.
Who it affects
All market makers in corporate bond CDS, Banks and primary dealers active in CDS trading, Operations and compliance teams handling trade reporting
What is the new reporting requirement for CDS trades?
From December 1, 2011, all market makers must report their CDS trades in corporate bonds to the CCIL trade repository (CORE) within 30 minutes of the trade.
Does this replace the earlier May 2011 guidelines?
Yes, this circular supersedes the earlier reporting requirement and specifies CCIL's CORE as the mandatory platform, while keeping the 30-minute reporting timeline.
What happens if we fail to report within 30 minutes?
The circular does not specify penalties, but timely reporting is a regulatory requirement. Non-compliance may invite supervisory action or affect your market maker status.