The National Stock Exchange (NSE) on March 29, 2023, issued a notification regarding the Two-way Portability across Clearing Corporations for the NSE Clearing - Capital Market, Futures & Options, and Currency Derivatives
The following has been stated namely: -
• The Members of NSE Clearing Ltd. (NCL) and Indian Clearing Corporation Ltd (ICCL) are informed that NCL and ICCL in consultation with (SEBI) are working on a two-way portability project which will be operated as “SaaS” (Software as a Service) model.
• The purpose of this two-way portability module is to provide business continuity to members of the Clearing Corporations (CCs) in case of a software problem faced in the Risk Management systems of the Clearing Corporations.
• The Salient features of the two-way portability model are as follows namely: -
1. Each CC will provide its Risk Management software to other CC in case of a software failure in the Risk Management Software of the other CC for the Equity Cash, Equity Derivatives, and Currency Derivatives Segments.
2. NCL would create a separate instance of its Risk Management System for ICCL and ICCL would create a separate instance of its Risk Management System for NCL.
3. Trades from the Exchanges pertaining to the Clearing Members of the affected CC will be processed in the Risk Management system of the other CC for computation of positions and margins, blocking of collateral, Risk Reduction Messages, give-up/take-up process, early pay-in, etc.
4. CCs would provide an interface to each other’s Members in various modules of such separate instances of the Risk Management system which will, inter alia, facilitate members to view their positions, margins, collateral limit utilization details, etc. in Equity Cash Equity Derivatives and Currency Derivatives Segments on a real-time basis at the CM/TM/client level.
5. At the EOD on such day, all the post-trade processes will be handled by designated CCs only.
6. Mock sessions would be conducted for market participants periodically.
• The Detailed guidelines in respect of the aforesaid two-way portability model will be issued shortly
[Circular No. 022/2023]
