What are Market by Price in FX-CLEAR and FX-SWAP systems?

What are Market by Order in FX-SWAP systems?

All the Authorised Dealers in Indian Foreign Exchange market which are active members of Forex Clearing and Settlement System of CCIL are eligible to become members of FX-CLEAR and FX-SWAP Dealing Systems. 

Do members need to take separate membership to become a member of FX-SWAP Dealing system?

Yes, members need to take separate membership to become a member of FX-SWAP Dealing system.

Clearcorp uses INFINET, a closed user group network as a communication backbone to establish connectivity with the member banks for FX-CLEAR and FX-SWAP Dealing Systems. 

What are the advantages FX-CLEAR offers to its members?

A member using FX-CLEAR gets the following benefits apart from leveraging CCIL’s institutional structure and standing:-

Guarantee of all the trades executed on the Order Matching Mode of the platform from the point of trade, with CCIL as counterparty.

Cost efficient dealing system: A minimal charge of Rs.20 per USD million is levied for the Interbank trades concluded on the FX-CLEAR platform. Trading on FX-CLEAR would greatly reduce the cost incurred by banks by way of brokerage fees.

STP for all Order matching trades:  All the trades concluded on the order matching mode of FX-CLEAR are guaranteed for settlement by the Clearing Corporation from the point of trade, wherein these trades are automatically sent to the Settlement segment of Clearing Corporation.

Qualitative features like Mini Market Watch, Market by Price, are available in the system which shows market depth and enables the dealers to trade multiple orders in one go.

What are the various modes of dealing on FX-CLEAR and FX-SWAP?

FX-CLEAR Dealing System offers two modes of dealing viz. Order Matching Mode and Negotiation (Chat) Mode. The Order matching mode of FX-CLEAR allows Spot trading in USD/INR currency pair which also includes trading in the FBIL USD/INR Reference Rate, whereas the Negotiation mode allows CASH, TOM, SPOT, Outright Forwards, Deposits and SWAP deals in USD/INR currency pair.

FX-SWAP Dealing System offers trading only on the Order Matching Mode.

What is Order Matching Mode on FX-CLEAR Dealing System?
 

The order matching mode of FX-CLEAR platform provides a neutral, anonymous and order driven dealing platform for the market participants. It works on the principle of ‘price discovery’. In this mode, orders (Bid and Offer) with valid inputs will be accepted for dealing and the system will match these with the counter-orders available in the order book, based on price and time priority. The order matching mode offers trading in USD/INR SPOT, C-SPOT and R-SPOT instruments. SPOT instrument allows the Members to trade in value SPOT in the USD/INR currency pair in market lot or multiples of market lot size. C-SPOT instrument allows Member to trade in the USD/INR currency pair in odd amount. R-SPOT instrument allows Member to trade in the FBIL USD/INR reference rate  at par, or by quoting a spread (premium or discount) on the USD/INR Reference Rate .

What is Negotiation Mode on FX-CLEAR Dealing System?
 

The Negotiation mode facilitates the dealer to chat with other member’s dealers for the purpose of arriving at a negotiated deal in the forex market in USD/INR currency pair, The deals negotiated will be captured as confirmed trades once acknowledged by both the parties. However, STP facility would not be available for these trades and hence need to be reported manually to the Clearing Corporation for settlement.

What are the various reports available to Members in FX-CLEAR Dealing System?

The following reports are generated in FX-CLEAR:-

      • Deal Ticket Report:

           * Order Matching Deal Ticket: The deal ticket for Order Matching Trades gets generated for every trade in SPOT, C-SPOT and R-SPOT and can be automatically printed. An option to print Duplicate deal tickets is also available.

           * Negotiation Deal Ticket: The Deal Ticket for Negotiation Trades gets generated for every trade and can be automatically printed. An option to print Duplicate Deal tickets from the Deal Log Report is also available.

            • Member Trade Report (Previous Trades): This report summarizes all deals done by the dealer in USD/INR (SPOT, C-SPOT and R-SPOT) market for the current business day in Order Matching Mode of FX-CLEAR.

            • Activity Log Report: The Activity Log Report gives the details of all the activities performed with respect to the orders placed/modified/cancelled and traded by the dealer.

            • Deal Log Report: This report summarizes all conversations done by dealer in Negotiation Mode of FX-CLEAR.

            • Trades Cancelled Report: This Report summarizes all USD/INR deals cancelled by the Member on the System through Trade Cancellation Facility.

            • Market Movement Report: This Report provides orders, trades and price related information for specified time intervals. This screen shows hourly information and is available in the Market Query Menu. The user can also take a printout of the market movement screen with the help of the Print button in the screen.

     All the above mentioned reports can be taken in multiple instances during the current business day.

What are the advantages FX-SWAP offers to its members?

·  Guarantee of all legs of the trades executed on the platform from the point of trade, with CCIL as counterparty.

·  Cost Effective dealing system:  A minimal charge of Rs.20 per USD million is levied for the Interbank trades concluded on the FX-SWAP platform. Trading on FX-SWAP would greatly reduce the cost incurred by banks by way of brokerage fees. 

·  STP for all trades: All the trades concluded on FX-SWAP are guaranteed for settlement by the Clearing Corporation from the point of trade, where in these trades are automatically sent to the settlement segment of Clearing Corporation.

·  Qualitative features like Market by Order - Total Market, Market by Price - Total Market are available in the system which shows market depth and enables dealer to trade multiple orders at one go.

What are the instruments available for trading in FX-SWAP Dealing System?

FX-SWAP Dealing System offers three upto Spot instruments viz Cash/Tom, Cash/Spot and Tom/Spot instruments, 12 month-end (forward) instruments i.e. spot over Month 1 end to Month 12 end, one LD/LD instrument (Month 1 end over Month 2 end) and two ORF instruments (Month 1 end and Month 2 end). In total, there are 18 instruments available at any point of time.

How does trading happen in forward instruments of FX-SWAP Dealing System?

 ·  Deal Ticket Report: The deal ticket for Trades gets generated for every trade and can be automatically printed. An option to print Duplicate deal ticket is also available.

Yes. A Trade Cancellation facility has been provided on both FX-CLEAR and FX-SWAP Dealing Systems to act as a safeguard for the dealers from erroneous trades getting concluded on the system. The trade cancellation is allowed on the system within the stipulated time as specified by Clearcorp. However, for Cash deals on FX-SWAP platform, the trade cancellation is allowed on the system within the stipulated time as specified by Clearcorp or the Cash Session, whichever is earlier.

Initiation Of Trade Cancellation Request

FX-CLEAR - the dealer can initiate the trade cancellation request by selecting “Cancel Trade” option available on right click on the deal in the Self trades static screen.

FX-SWAP - The dealer can initiate the trade cancellation request by selecting the particular deal he wishes to cancel and clicking on the “Cancel Trade” button provided in the Previous Trades query screen.

What is Market by Price in FX-CLEAR and FX-SWAP systems?

• Market by Price: - Market By Price displays the Best outstanding Bids and Best outstanding Offers available for trading, at different prices with the cumulative quantity of one or more orders available at the same price.

 

What is Market by Order in FX-SWAP systems?

• Market by Order: - Market By Order displays the instrument wise Five Best outstanding Bid orders and Five Best outstanding Offer orders in the Market based on price time priority.
 

CCIL provides STP (Straight Through Processing) facility for all the trades done on FX-CLEAR (Order Matching mode) and FX-SWAP, by default, since these trades are guaranteed for settlement by Clearing Corporation from the point of trade and would automatically flow to the Settlement System of Clearing Corporation. The member need not report these trades separately for settlement to Clearing Corporation.

Yes. The dealer can contact FX-CLEAR Helpdesk team to unlock/reset the FXCLEAR/FXSWAP Login password.

FX-SWAP: As and when a trade is executed by the dealer on FX- SWAP platform, a .csv file containing the details of the trade/deal is generated which is saved in designated folder as specified by the dealer in the FX-SWAP dealer Frontend.

Member can integrate these .csv files with their Deal Reporting / Back-Office software for automation of deal/trade flow. 

View System Requirements document.