India now has a second clearing corporation, as MCX-Stock Exchange Clearing Corporation completed its first settlement on February 17, 2009.
MCX Stock Exchange set up this clearing corporation within six months of operations. The SEBI approval for the clearing corporation was received on January 2, 2009 and the RBI approval was received on February 13, 2009.
MCX Stock Exchange Clearing Corporation has state of art risk management system which uses SPAN based value at risk margining model apart from various other online and offline risk management tools. Some of the leading banks assisting MCX Stock Exchange Clearing Corporation in providing clearing bank services include HDFC, ICICI, Union Bank, State Bank, Axis, IndusInd, Kotak & YES Bank.
MCX Stock Exchange Clearing Corporation has appointed Mr. Tapas Das as chief operating officer. Mr. Das has over 22 years of professional experience in areas of the banking and capital market industry. He has handled key areas such as market safety (risk management), market integrity (surveillance & investigation), and clearing and settlement processes at the National Stock Exchange.
He has also implemented data warehouse solutions & decision support systems in Tier 1 international banks in North America and data operations for exchange traded instruments globally. The clearing corporation has online connectivity with clearing banks, MCX Stock Exchange and clearing members for close co-ordination and smooth functioning.
The clearing corporation model is on the lines of global clearing corporations and it provides counterparty guarantee making the settlement of trade independent from counterparty risk. MCX Stock Exchange has 57 clearing members, which includes banks and large corporate members and each clearing member is required to have a minimum net worth of Rs. 10 crores. The clearing members clear the traders of trading members and MCX Stock Exchange has over 400 trading members currently registered with SEBI.
On this development MCX Stock Exchange spokesperson said, "With establishment of its own clearing corporation, MCX Stock Exchange has joined the league of advance Stock Exchanges of the world which have a separate but directly owned clearing corporation as globally the next generation of market innovation is happening through clearing related services."