Grant of Qualifying Central Counterparty (QCCP) status to MCXCCL
Multi Commodity Exchange Clearing Corporation Ltd. (MCXCCL) has been granted qualifying central counterparty (QCCP) status in view of the fact that it is regulated by Securities and Exchange Board of India (SEBI) under SEBI Act, 1992, Securities Contract (Regulation) Act, 1956 (SCRA) and Rules and Regulations made there under. It is also subjected on an on-going basis, to rules and regulations that are consistent with the Principles for Financial Market Infrastructures (PFMIs) issued by the Committee on Payment and Settlement Systems (CPSS) and International Organization of Securities Commissions (IOSCO).
Background
MCXCCL is functioning as Clearing Corporations recognised under SCRA and Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 to undertake the activity of clearing and settlement of trades in securities or other instruments or products that are dealt with or traded on recognized stock exchanges.
Clearing Corporations are designated as Market Infrastructure Institutions (MII) for oversight considering its systemic importance in Securities markets regulated by the SEBI. As such, it was subjected to regulation and supervision using the PFMIs framework thus necessitating its adherence to PFMI requirements. The “Principles for Financial Market Infrastructure” (PFMIs) were issued by the CPSS and IOSCO in April 2012. These were issued to enhance safety and efficiency in payment, clearing, settlement and recording arrangements and more broadly, to limit systemic risk and foster transparency and financial stability. The members of CPSS and IOSCO are required to strive to adopt the PFMIs in their respective jurisdictions in line with the G20 expectations. SEBI, as a member of Financial Stability Board (FSB) and IOSCO, is committed to adoption and implementation of the PFMIs.