The Clearing Corporation of India Ltd (CCIL) on May 02, 2023, notified the Service for Analysis of Risk, Valuation, and Margining (SARVAM) to provide ‘Valuation’, ‘Margining’ (both Variation Margin (VM) and Initial Margin (IM)), ‘Collateral Management and Margin Maintenance’ and Risk Analytics services for NCCDs under its different modules.
To provide a robust market infrastructure in the Indian financial markets, The Clearing Corporation of India Ltd. (CCIL) is extending its services in margining and collateral management for NCCDs by offering a comprehensive, secure, and seamless solution to meet the above expectations and commitments.
Accordingly, eligible entities desirous of availing CCIL’s SARVAM may apply (effective from May 02, 2023). Presently, SARVAM offers the under-noted services:
• Trade Reporting and creation of counterparty-wise portfolios for various asset classes of NCCDs. If trades are already reported to CCIL’s Trade Repository (TR), consent would be obtained to take such reported trades for Valuation and Variation Margin (VM) calculation
• Trades reported and matched in CCIL TR till 9 p.m. on the reporting date ( T day) shall be taken up for the creation of counterparty wise portfolio and calculation of VM.
• Capture of bilateral CSAs and valuation and VM computation based on the terms of bilateral CSA.
• Facility to reconcile the VM difference with the bilateral counterparty, if required.
• Provision of margin call reports and other Valuation/Risk Analytic reports on a T + 1 basis (around 10.00 a.m.)
• Recording of Margin posted/received in Collateral Module.
• Provision of various other reports as may be notified by CCIL from time to time.
The Link for the rules governing the operation/services provided under SARVAM is - https://www.ccilindia.com/Derivatives/Documents/SARVAM%20Rule%20Book.pdf
[Notification No.: CCIL/DRV/23/15]
