Portfolio Compression for outstanding IRS trades carried out on 10th
September 2020
On 10th September 2020, CCIL successfully
carried out the 19th 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. 21 large foreign, private and nationalized sector
Banks and Primary Dealers participated in this exercise. Of the 17,561 trades
between 21 members which were found to be eligible for being considered for compression,
15,588 trades were identified for early termination achieving a compression of
over 88.76%. 15,358 trades were terminated fully while 230 trades were
partially terminated. The reduction in market-wide Notional Outstanding of Rs.
6,26,673.58 crores was achieved through this portfolio compression exercise.
The compression exercise included both trades cleared by CCIL and non-cleared
trades.