Portfolio Compression for outstanding IRS trades carried out on 25th
February 2021
On 25th February 2021, CCIL
successfully carried out the 21st cycle of the Portfolio Compression exercise
in the Interest Rate Swaps market aimed at reducing the overall notional
outstandings and the number of outstanding contracts by identifying economically
redundant trades for early termination. 20 large foreign, private and
nationalized sector Banks and Primary Dealers participated in this exercise. Of
the 8,797 trades between 20 members which were found to be eligible for being
considered for compression, 6,693 trades were identified for early termination
achieving a compression of over 76.08%. 6,445 trades were terminated fully
while 248 trades were partially terminated. The reduction in market-wide
Notional Outstanding of Rs. 2,82,692.75 crores was achieved through this
portfolio compression exercise. The compression exercise included both trades
cleared by CCIL and non-cleared trades.