| 1. |
Who can be member of FX- CLEAR?
All the Authorised Dealers in Foreign Exchange who have Current Accounts with Reserve Bank of India and are active members of Forex Clearing and Settlement System of CCIL are eligible to become members of CCIL’s Forex Dealing Segment i.e. FX-CLEAR.
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| 2. |
How will the connectivity between CCIL and member be established for FX-CLEAR?
CCIL would use INFINET, a closed user group network as communication backbone. INFINET is the domestic payments system network, developed by Reserve Bank of India and each bank will be connected to it via a Gateway Server. Hence, it is necessary for Members to have an INFINET connection for transmission of data to CCIL via INFINET.
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| 3. |
What are advantages a member will get by using FX-CLEAR?
A member using FX-CLEAR will get following benefits apart from leveraging CCIL’s institutional structure and standing:- 1. Cost efficient dealing system, 2. Straight Through Processing of deals executed on FX-CLEAR, 3. Use of other qualitative features like Market by Order-Total Market, Market by Order - Preferred Market, Market by Price -Total Market and Market by Price -Preferred Market, available in the system.
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| 4. |
What are system requirements for deployment of FX-CLEAR at Member’s end?
View System Requirements document.
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| 5. |
How CCIL will ensure security of data?
FX-CLEAR Application uses Public-key infrastructure (PKI) issued by IDRBT, a certification authority to ensure security of data. Public-key infrastructure (PKI) is the combination of software, encryption technologies, and services that enables enterprises to protect the security of their communications and business transactions on networks. The data at the members end will be encrypted using its private key and will be appended with a unique digital signature. This encrypted data along with member’s public key will be transmitted to CCIL via INFINET. If the data is tampered with during its transmission the unique digital signature will change. At CCIL end the unique digital certificate will be first checked to ensure the authenticity of data. If the data is not tampered the member’s public key will be used to decrypt the data.
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| 6. |
What are the various modes in which a dealer can trade in FX-CLEAR?
FX-CLEAR application has two main modules viz. Order Matching Mode and Negotiation Mode. The user of FX-CLEAR can execute a trade through Order Matching and Negotiation Mode.
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| 7. |
What is Order Matching Mode?
The Order Matching system is a completely neutral, anonymous and confidential dealing platform for Forex market. The system works on the principle of Order-Driven-Price-Discovery mechanism. The Members of the system place their Bid and Offer orders into the system. These orders are tried for matching with other such opposite orders placed by the Counter parties of the member. If the order matches, then the trade takes place for the quantity which is the least of the bilateral limits set up by members against each other. However, the counter-party’s identity will not be known to either party until the transaction is completed.
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| 8. |
What is Negotiation Mode?
In the Negotiation system the dealer is provided the facility to converse through exchange of messages electronically with other member’s dealers for the purpose of arriving at a negotiated deal in the forex market. The dealer contacts (calls) other members’ dealer by entering the four letter bank code in the command line. The dealer can also specify the subject after the member code. Call so placed appears in the Outgoing Call node for the Dealer who has placed the call. Counter dealer can pick up the call by double clicking on the corresponding call in his Incoming Call node. This invokes Negotiation screen at the counter dealer; using which he/she can negotiate a deal, through exchange of messages. After negotiation the deal ticket is invoked and filled. The dealers can confirm the deal. The Deal Log is available for the purpose of viewing the deals done through the day; it also gives status of the deal e.g. Awaiting Action (AWAC), Confirmed (CNFM), Traded (TRAD), Cancelled (CNC
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| 9. |
Can the dealer modify/cancel orders placed in Order Matching Mode of FX-CLEAR?
The user of FX-CLEAR has facility to modify or cancel his/her outstanding orders. Outstanding Orders are those orders which are not matched by the system.
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| 10. |
What is the difference between Total Market and Preferred Market?
Total Market comprises all the orders placed in the system in Order Matching Mode of FX-CLEAR. Preferred Market is subset of Total Market which shows orders available to a member based on bilateral limit set by members against each other.
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| 11. |
How a member can define its own preferred market?
By setting Bilateral Limit against counter members a dealer can define his preferred market. Bilateral Limit is limit upto which a dealer wants to trade with a counter-party member.
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| 12. |
What are the various Price conditions which can be attached to an order placed in Order Matching Mode?
A dealer can attach following price conditions to an order placed in Order Matching Mode:- • Limit price: The maximum price which the dealer wishes to pay while buying or the minimum price which the dealer wishes to receive while selling. • Market Price: An order for which no price has been specified at order entry time. This order would be traded at the current opposite side best order’s price. • Stop Loss (SL) Price: The dealer can enter an order with a SL trigger price. Such orders are called Stop Loss orders. The stop loss orders are not taken for matching unless the trigger price is either reached or if it is surpassed by the last traded price for the instrument. Once the market price reaches or surpasses the trigger price, the ‘stop loss’ attribute is removed and the order is taken up for regular matching process. • Take Profit (TP) Price: The dealer can enter an order with a TP trigger price. Such orders are called Take Profit orders. The TP orders are not taken for match
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| 13. |
What are the various Time conditions which can be attached to an order placed in Order Matching Mode?
A dealer can attach following time conditions to an order placed in order matching mode:- • Day Order: Day orders should be executed on the specific day, otherwise they are automatically cancelled. • IOC Order: An order with IOC time condition will try to find a match as soon as it is entered or will get cancelled immediately. IOC stands for ‘Immediate or Cancel’. • GTC Order: An order with GTC time condition will remain in the system till it is cancelled by the dealer. GTC stands for ‘Good Till Cancel’.
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| 14. |
What are the alert mechanisms provided to the dealer in Order Matching Mode?
FX-CLEAR supports some alert mechanism in its Order Matching Mode. The system will alert the user in following cases:- 1). Quantity Freeze: If the quantity of the order being placed exceeds a predefined quantity say 5 Mio then an alert is thrown to the dealer. 2). Price Freeze: If the price of the order being placed lies beyond the predefined price range on either side of the LTP (Last Traded Price) then again an alert is thrown to the dealer. Once an alert is thrown, the dealer has the option to either to modify the order or continue with the same order.
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| 15. |
What is MBO and MBP?
• MBO: - MBO or Market By Order displays five best Bid and Offer side orders based on price time priority. • MBP: - MBP or Market By Price displays the best five outstanding Bid and offer prices and the cumulative quantity of one or more orders at each price.
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| 16. |
What is the difference between MBO-Total Market and MBO- Preferred Market?
• MBO - Total Market: MBO-Total Market enables the member to view the Total Market’s best five outstanding orders in the price / time priority order. For orders with the same price, the orders entered earlier than others are displayed first. • MBO - Preferred Market: MBO-Preferred Market enables the member to view the Preferred Market’s best five outstanding orders in the price / time priority. For orders with the same price, the orders entered earlier than others are displayed first. Bid or Offer orders can be placed by double clicking on any of the rows of “MBO – P” i.e. dealer can hit the market. If Dealer clicks on the Bid side, Offer order is placed and vice versa. If dealer clicks on the third order from the top on the Bid side then an Offer order is placed with Price of that row and Quantity as sum of the Quantities of 1st, 2nd and 3rd rows.
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| 17. |
What is the difference between MBP-Total Market and MBP- Preferred Market?
• MBP - Total Market: MBP-Total Market displays the Total Market’s best five outstanding order prices and quantity available (which are derived by consolidation of orders at the respective prices) in respect of each price. • MBP - Preferred Market: MBP-Preferred Market displays the Preferred Market’s best five outstanding order prices and quantity available (which are derived by consolidation of orders at the respective prices) in respect of each price. Bid or Offer orders can be placed by double clicking on any of the rows in the MBP- P i.e. dealer can hit the market. If the dealer clicks on the bid side, offer order is placed and vice versa. If dealer clicks on the third order from the top on the bid side then an offer order is placed with price of that row and quantity as sum of the quantities of 1st, 2nd and 3rd rows.
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| 18. |
How many negotiations can be done simultaneously?
The user of FX-CLEAR can enter into 8 (eight) active negotiations simultaneously.
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| 19. |
What are the queries available to dealers in the system?
Following queries are available to dealers in Order Matching Mode: • Outstanding Orders: This screen shows the dealer his / her outstanding orders for USD / INR SPOT Market. The dealer will be able to view the orders which are not traded or partially traded till the time of the Query. Orders are visible in Price-Time priority. • Previous Trades: This screen shows all trades done by the Dealer in USD/INR SPOT market for the current business day. The dealer can also view total quantity of USD bought, Total quantity of USD sold and his/her net position. • Activity Log: Activity Log gives the details of all the activities performed on orders by the dealer. The activity can be ‘Placed’, ‘Modified’ or ‘Cancelled’ etc. Dealer can view activity log for any single order or for all the orders for that day. Order Status: The Order Status screen provides the current status of the orders placed by the dealer i.e. whether the order is passive, cancelled or traded at a particular point of time.
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| 20. |
What are reports available in FX-CLEAR?
Following reports are generated in FX-CLEAR:- • Member Trade Report (Previous Trades): This report summarizes all deals done by dealer in USD/INR SPOT market for the current business day in Order Matching Mode of FX-CLEAR. The footer of the report consolidates total quantity of ‘USD bought’ its INR equivalent and WAP, total quantity of ‘USD sold’ its INR equivalent and WAP and ‘Net Position’. This report can be taken multiple times during the current business day. • Activity Log Report: The Activity Log Report gives the details of all the activities performed on orders by the dealer. This report is available for a single order or all the orders for that day. This report can be taken multiple times during the current business day. • Deal Log Report: This report summarizes all conversations done by dealer in Negotiation Mode of FX-CLEAR. This report can be taken multiple times during the current business day. • Trades Sent For Settlement Report: This report summarizes all USD/INR dea
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| 21. |
When Deal ticket Printouts are fired?
View document for details.
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| 22. |
What are various deal types and Currency Pairs in which a dealer can trade in Negotiation Mode of FX-CLEAR?
Negotiation Mode of FX-CLEAR allows a dealer to enter into CASH, TOM, SPOT, Outright Forwards and SWAP deals in following currency pairs:- 1).USD/INR 2).GBP/USD 3).EUR/USD 4).EUR/INR 5).USD/JPY 6).JPY/INR 7).GBP/INR 8).GBP/JPY 9).EUR/JPY
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| 23. |
When status of deal in Deal Log will change to ‘TRAD’ from ‘CNFM’?
When a dealer who has executed a USD/INR deal in Negotiation Mode of FX-CLEAR fills the deal ticket and clicks on ‘Confirm’ button the status of the deal will be shown as ‘CNFM’ in the ‘Deal Log’. When both the counterparty to a deal confirm the deal ticket and the deal matches the status of the deal will change to ‘TRAD’ in the ‘Deal Log’.
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| 24. |
What is ‘STP’?
CCIL will provide STP (Straight Through Processing) for all USD/INR trades done on FX-CLEAR. All USD/INR (except CASH and TOM) trades done on FX-CLEAR will flow to the CCIL Clearing and Settlement System. The member will not be required to prepare and send trade details in IFN 300 for settlement of abovementioned deals.
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| 25. |
Can a member modify or cancel a deal (USD/INR) done on FX-CLEAR after the deal has been sent to Clearing and Settlement System (CSS) of CCIL for settlement?
Once a deal (USD/INR) done on FX-CLEAR has been sent to Clearing and Settlement System, the counterparties to deal can modify or cancel the same by sending cancellation (CANC) or modification (AMND) request in IFN 300 format with the same Transaction Reference Number .
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| 26. |
What kind of reference number will be allotted to deals done on FX-CLEAR?
All trades executed on Order Matching Mode and deals confirmed on Negotiation Mode of FX-CLEAR will be allotted a unique Trade and Deal Number respectively. For trades done through Order Matching Mode the trade number will be common to both the counterparties. Format of the trade and deal numbers will be like: - OM YYYYMMDD0nnnnnn (Trade Number allotted to trades executed on OM) NM YYYYMMDD5nnnnnn (Deal Number allotted to deals confirmed on NM) However in ‘Member Trade Report’ and ‘Trades Sent For Settlement Report’ Trade Number will be appended with indicator ‘F’. The suffix ‘F’ denotes First Leg.
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| 27. |
How a member can reconcile the deal done on FX-CLEAR?
View document for details
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| 28. |
How the swap deals will be sent to Clearing and Settlement System?
All Swap deals done on FX-CLEAR will be broken into two legs while sending them to Clearing and Settlement System. Only spot and forward legs will be sent to Clearing and Settlement System i.e. Cash and Tom legs will not be sent to Clearing and Settlement System. However, once Clearing and Settlement System starts settlement of Cash and tom deals, Cash and Tom legs will also be sent to Clearing and Settlement System for settlement.
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| 29. |
How does a member integrate the data of FX-CLEAR with its own system?
Every time a trade is executed on the Order Matching Mode and/or a deal is confirmed on the Negotiation Mode of FX-CLEAR a .csv file is generated which is saved in a designated folder in the dealing terminal. Member can integrate these .csv files with there Front/Back Office software.
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| 30. |
Can I request for resetting my Log in Password?
The user of FX-CLEAR can request FX-CLEAR Admin to reset its password.
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| 31. |
What are contact points at CCIL?
Contact Person Contact No. Contact Person Contact No. Mr. Ashish P 56639363 (D) 24928155 (363) Mr. Aniket P. Code of CCIL Help Desk in Negotiation Mode CCIL Mr. Abhishek. K. 56639369 (D) 24928155 (369) Help Desk 56639208 Fax 24937651
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| 32. |
Can I see best five prices?
View document for details.
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