We ask the FSB and its relevant members to assess regularly implementation and whether it is sufficient to improve transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.” Keeping in view the thrust of the G20 on reforms in the OTC derivatives market, Reserve Bank has drawn up and is implementing a roadmap focussed on standardisation (e.g., OIS has been standardised) reporting to the Trade Repositories {e.g., all foreign exchange and interest rate derivatives are reported to the Clearing Corporation of India Limited (CCIL)}, central clearing (e.g., 90 per cent of the IRS currently are being cleared through the Central Counter Party, i.e., the CCIL) & exchange or electronic platform based trading (e.g., permission to CCIL to start electronic trading platform for the IRS).
30. The need for robust market infrastructure has been recognised in India quite early. Settlement of financial contracts through a central counterparty (CCP) mechanism is a key risk-mitigation measure. We had introduced CCP clearing in government debt and foreign exchange spot transactions by a specialised institution (viz. CCIL) in 2001 and 2006 respectively.