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CCIL, FIMMDA and FBIL

Clearing Corporation of India Limited (CCIL), Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Financial Benchmarks India Limited (FBIL) play an important role in the Indian financial markets.

Clearing Corporation of India Limited (CCIL)

The Clearing Corporation of India Limited (CCIL) is the clearing agency for Government Securities (G-Secs). All outright trades undertaken in the Over-the-Counter (OTC) market and on the Negotiated Dealing System-Order Matching (NDS-OM) platform are cleared through the CCIL. 

CCIL acts as a Central Counter Party (CCP) for all transactions in G-Secs by interposing itself between two counterparties through the process of novation, i.e. it becomes the seller to the buyer and buyer to the seller of the actual transaction. 

CCIL also guarantees settlement of all trades in G-Secs. That means, during the settlement process, if any participant fails to provide funds / securities, CCIL will make the same available from its own means. For this purpose, CCIL collects margins from all participants and maintains ‘Settlement Guarantee Fund’.

Fixed Income Money Market and Derivatives Association of India (FIMMDA)

The Fixed Income Money Market and Derivatives Association of India (FIMMDA), an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies was incorporated on June 03, 1998. 

FIMMDA is a voluntary market body for the bond, money and derivatives markets. It represents market participants and aids the development of the bond, money and derivatives markets. It acts as an interface with the regulators on various issues that impact the functioning of these markets. FIMMDA also plays a constructive role in the evolution of best market practices by its members so that the market as a whole operates transparently as well as efficiently.

Financial Benchmarks India Limited (FBIL)

RBI had set up a Committee on Financial Benchmarks (Chairman: Shri Vijaya Bhaskar, Executive Director, RBI) in June 2013 to review the existing systems governing major financial benchmarks in India. 

Based on the recommendations of the Committee, Financial Benchmarks India Pvt. Ltd. (FBIL) was jointly promoted by Fixed Income Money Market and Derivatives Association of India (FIMMDA), Foreign Exchange Dealers’ Association of India (FEDAI) and Indian Banks' Association (IBA) in December 2014. In July 2015, FBIL was recognised by RBI as an independent benchmark administrator. 

FBIL aims to develop and administer benchmarks relating to money market, government securities and foreign exchange in India. 


References

Financial Benchmarks India Pvt. Ltd. (n.d.). 'Background'. Retrieved from https://www.fbil.org.in/#/aboutus/background

Reserve Bank of India. (2020, April 01). 'Government Securities Market in India – A Primer'. Retrieved from https://www.rbi.org.in/Scripts/FAQView.aspx?Id=79


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