Reducing the cost of forex transactions in India by providing cost-efficient trading terminals. Clearcorp provides FX-CLEAR and FX-SWAP platforms, free of cost to its members, where as similar available systems cost them Rs 50000/= to more than Rs 3 lakhs per month per terminal depending on the services they choose to have. Further, a member can also reduce the costs incurred by way of brokerage fees by using CCIL platforms.
Offering a level playing field for all the members.FX-CLEAR and FX-SWAP facilitates the members to trade freely without setting limits against the Bilateral parties or selecting preferred counterparties, thus providing an equal opportunity for all the participants by providing all the prices to all the members on the platform.
Offering guaranteed settlement from the point of trade.All trades concluded on the FX-CLEAR platform (Order matching mode ) and the FX-SWAP platform are guaranteed by Clearing Corporation for settlement from the point of trade on the platforms, with Clearing Corporation (CCIL) as counterparty for these trades.
Offering enhanced value added trading features to meet the real needs of market relating to forex transactions. Some of the features like market by price (best 5), market by order (best 5), market movement, and orders with price, time and quantity conditions etc. which are available in FX-CLEAR and FX-SWAP are not available in other existing Forex Dealing Systems in India.
Clearcorp provides STP (Straight Through processing) for all trades concluded in the FX-CLEAR (Order Matching mode) and FX-SWAP. All deals concluded on the FX-CLEAR platform (order matching mode) and FX-SWAP platform shall be automatically sent to the Settlement Segment of Clearing Corporation. Accordingly, Members need not report these deals separately to Clearing Corporation for settlement. However, the Negotiation deals concluded on the FX-CLEAR platform need to be reported separately in the IFN 300 format.
Reducing the counter-party default risk by ensuring suitable settlement mechanism.
The predominant risk is settlement risk which is the risk that settlement does not take place as expected. Settlement risk comprises both credit and market risks. With the implementation of PvP (Payment versus Payment) mode of settlement in FX-CLEAR and FX-SWAP platforms, CCIL has been successful in completely mitigating the settlement risk by providing CCIL as counterparty for the trades on the FX-CLEAR and FX-SWAP platforms from point of trade.