MCX Clearing Corporation, the wholly-owned subsidiary of country’s largest commodity exchange MCX, will start operations on Monday, September 3.

The exchange said MCXCCL will provide secure counter party risk management and post-trade services that will help mitigate risks. It will be the central counter party for all trades executed on MCX. The clearing corporation will also be responsible for collection of margins from the members, effect pay-in and pay-out of funds and commodities.

At the time of commencement MCXCCL will have a Settlement Guarantee Fund of over ₹230 crore. Its members can choose among the 13 empanelled clearing banks for funds settlement.

The clearing corporation will have a net worth of ₹150 crore which has to be increased to ₹300 crore in a year.

Saurabh Chandra, Chairman of MCX, said the institutionalisation of clearing with sound risk management practices and operational efficiencies will facilitate market growth and add immense value to the commodity ecosystem.

This would also enable greater institutional participation and help in the development of new products, he said.

Ved Jain, Chairman, MCXCCL, said clearing of trade is one of the most critical activity of exchange-traded markets, and it is this function that gives the market its fundamental strength, leading to the enhanced trust among its participants and various stakeholders.

MCXCCL is fully committed to take up the responsibility of working towards enhancing market efficiencies, maintaining the highest standards of operational systems, risk management and governance practices, he said.

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