In a first of its kind of equity–commodity convergence, Reliance ADAG-anchored commodity derivatives trading platform Indian Commodity Exchange has received approval from the Securities and Exchange Board of India (Sebi) to outsource clearing and settlement of the exchange transactions from the Metropolitan Clearing Corporation of India (MCCIL), a subsidiary of Metropolitan Stock Exchange (MSE).
With this, MCCIL has started handling all transactions on ICEX for clearing and settlement of contracts effective October 1. Now, the alliance paves the way for ICEX to outsource clearing and settlement of all trades on it to MCCIL, a Sebi-recognised clearing corporation.
With this, MCCIL will act as the counterparty for all trades to be executed on ICEX and also guarantee settlement. Accordingly, the associated risks will also be assumed and handled by the MCCIL. Sebi has mandated that from this October all commodity exchanges shall have independent clearing corporations. MCX and NCDEX clearing corp subsidiaries are already operational.
"We are also anticipating many changes in the ecosystem around exchange-traded markets and would like to take a decision on having our own vertically integrated clearing corporation after some time," said Sanjit Prasad, managing director and chief executive officer, ICEX.