The full form of CCIL stands for Clearing Corporation of India Limited. Established in April 2001, CCIL aims to render guaranteed clearing and settlement functions. It concerns transactions in G-Secs, money, derivative markets and foreign exchange.
The implementation of guaranteed clearing and settlement led to significant improvements in transparency, market efficiency, liquidity, and risk management/measuring practices in these markets, as well as additional benefits such as reduced operating risk and settlement costs, and so on.
Through CLS Bank, CCIL also provides non-guaranteed settlements for cross-currency transactions and Rupee interest rate derivatives.
CCIL’s adherence to the onerous rules regulating its activities as a Financial Market Infrastructure resulted in its designation as a Qualified Central Counterparty (QCCP) by the Reserve Bank of India in 2014. It also established a Trade Repository to allow financial firms to declare their OTC derivatives activities.
More About CCIL in Detail
CCIL also serves as a trade depository for all OTC interest rate, Forex, and credit derivative transactions. Portfolio compression for unpaid cleared Forex forward derivative transactions and Rupee Interest Rate Swaps are also done semi-annually.
CCIL is the Local Operating Unit (LOU) for distributing globally compatible Legal Entity Identifiers (LEIs) in the Indian financial market through its subsidiary Legal Entity Identifiers India Limited.
CCIL is currently the computation agent for a handful of the major benchmarks used by the market, with the support of the Benchmark Administrator, Financial Benchmarks India Limited (FBIL).
CCIL obtained certification ISO / IEC 27001:2013 from DNV GL in 2015 to protect its information properties.
CCIL disseminates information and statistics on CCIL activities and financial markets through publications and website updates.
CCIL has expanded with the evolving paradigms of the financial system throughout the years, taking on diverse positions in the financial industry. CCIL has created numerous platforms for the electronic execution of transactions in various market categories with the assistance of its wholly-owned subsidiary, Clearcorp Dealing Systems Limited (CDSL).
Must Read: What is the Full Form of CCT?
For more information, keep reading about various short forms in our general knowledge section!