ISDA Responds to CCIL on Proposal for USD/INR FX Options

On June 21, ISDA submitted a response to a consultation paper from the Clearing Corporation of India Limited (CCIL) on a proposal to introduce an electronic trading platform and clearing and settlement services for USD/INR FX options of up to one year maturity initially.

The response sets out the features of the trading platform, the risk management framework and a questionnaire on the parameters of the product. ISDA’s response focuses mainly on the risk management framework aspect, including the margin models and default management framework. It asks for more clarity and transparency on the choice of margin models and encourages the implementation of scheduled variation margin calls and stress-based anti-procyclicality measures.

The response also reiterates previous comments made on the clearing members’ capped liability framework and highlights ISDA’s expectation for CCIL to modify the framework to reduce members’ concerns over their exposure during the default of one or more clearing members.

Click on the attached PDF to read the consultation response.

Documents (1) for ISDA Responds to CCIL on Proposal for USD/INR FX Options

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