As part of these measures, all transactions in OTC derivatives are reported by market makers to the Trade Repository (TR) of the Clearing Corporation of India Limited (CCIL).However, there is an element of non-transparency as the significant number of offshore derivatives transactions in rupee are unreported and therefore unavailable to market participants. This shortcoming was partially addressed when standalone primary dealers were required to report all rupee derivative transactions executed by their related parties globally by October 2022.
Further, banks in India were required to report all rupee interest rate derivative transactions executed globally by their related parties by December 2025.
“In line with this process of increasing transparency of the rupee derivatives markets, it is now proposed that all Authorized Dealer Category-I banks will report currency derivative transactions involving INR executed by their related parties worldwide,” the RBI said.
The resulting transparency will enable better pricing decisions by market participants, the report said. Under the draft guidelines, Authorized Dealer Category I banks will report all elements of the covered transactions that are relevant to provide meaningful information about the transaction.
This includes, but is not limited to, the notional value, counterparty name, expiry date, currency and specifications, as applicable to the transaction, it added.
The central bank has invited market participants, stakeholders and other interested parties to comment on the draft guidelines by March 9.
#RBI #releases #draft #standards #reporting #forex #derivatives #transactions #involving #rupee