What changed
RBI extended mandatory reporting on CCIL's platform to cover inter-bank OTC FCY (excluding USD)-INR forwards and FX swaps, FCY-FCY forwards, FX swaps, and options. These trades must be reported from November 5, 2012. Reporting timelines differ: FCY (ex-USD)-INR trades in hourly batches within 30 minutes of the hour, while FCY-FCY trades executed by 5 PM must be reported by 5:30 PM same day, and trades after 5 PM by 10 AM next business day.
What it means for you
Banks must now report a wider set of OTC FX derivative trades to CCIL, increasing operational load and requiring system updates. The phased approach means banks need to ensure compliance with new reporting deadlines and handle trades with overseas counterparties (no matching required). Outstanding positions as of November 5 must be reported by November 30, 2012.
What you must do
- Prepare systems to report FCY (ex-USD)-INR forwards and FX swaps in hourly batches within 30 minutes of the hour.
- Set up processes to report FCY-FCY forwards, FX swaps, and options in one batch by 5:30 PM for trades executed by 5 PM, and by 10 AM next day for later trades.
- Report all outstanding inter-bank OTC FCY (ex-USD)-INR and FCY-FCY derivatives as of November 5, 2012 to CCIL by November 30, 2012.
- Train staff on CCIL's operational guidelines and ensure familiarity with the 14 covered currencies (USD, EUR, GBP, JPY, AUD, CAD, CHF, HKD, DKK, NOK, NZD, SGD, SEK, ZAR).
Who it affects
All Category-I Authorised Dealer Banks, Market makers (banks/PDs) dealing in OTC FX derivatives, CCIL as the reporting platform operator
What is the deadline for reporting FCY-FCY trades executed after 5 PM?
Such trades must be reported in one batch by 10 AM on the following business day.
Do I need to report trades with overseas counterparties, including my own branches?
Yes, AD banks must report FCY-FCY forwards, FX swaps, and options executed with overseas counterparties, including their own branches/parent body. However, there is no matching requirement for these trades on the CCIL platform.
Which currencies are covered under this reporting requirement?
The reporting currently covers 14 currencies: USD, EUR, GBP, JPY, AUD, CAD, CHF, HKD, DKK, NOK, NZD, SGD, SEK, and ZAR. Additional currencies will be added later.