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NOTICES
Notice No.   20230126-1   Notice Date   26 Jan 2023
Category   Settlement/RMS   Segment   General
Subject   Segregation and Monitoring of Collateral at Client Level - Penalty mechanism for Short Allocation
 
Content

To

All Members/Participants,

 

In continuation to ICCL Circular No. 20220429-14 dated April 29, 2022, members may please note that implementation of penalty for short allocation (on maximum amount of short allocation based on EOD well as intraday basis) would be implemented from trade date February 13, 2023 instead of February 01, 2023.

 

Further, in continuation to ICCL Circular No. 20220819-5 dated August 19, 2022, regarding Segregation and Monitoring of Collateral at Client Level - Penalty mechanism for EOD Short Allocation, wherein it was specified that members shall have an opportunity to report amount of client collateral available against segment wise short allocation. Now, in view of implementation of penalty for short allocation (on maximum amount of short allocation based on EOD well as intraday basis), the file formats to be considered for uploading the reporting to the clearing corporation is amended as below.

 

The file shall be provided on a T+1 basis, the reporting shall be done by T+5 working days from the trade date. For example, file for February 13, 2023, shall be provided on February 14, 2023, and reporting for the same shall be accepted till EOD of February 20, 2023.

 

1.                  Short allocation report for Clearing / Trading Members

Clearing Members/ Trading Members will be provided with files for reporting of reasons for short allocation. The files will contain the following details:

 

Trade Date

DD-MM-YYYY

Clearing Member code

 

Trading Member Code

 

Client Code

 

CP Code

 

Allocated Collateral (I)

 

Margin Required (J)

 

Short Allocation (K= J - I)

 

Indicator

E for EOD and respective snapshot number for intraday

Note: The Short Allocation figures in K will be after adjustment of excess collateral lying in other segments.

 

File format: CSV files

File Name:

File name

Member type

SHORTALLOCATION_CM_CLGNO_DDMMYYYY.CSV

CM

SHORTALLOCATION_TM_CLGNO_DDMMYYYY.CSV

TM

 

2.                  Reporting to be done by Clearing / Trading member for short allocation:

The Clearing / Trading Members will be required to report the files to ICCL in the following format:

Trade Date

As provided in short allocation report (in point 1 above)

Clearing Member code

As provided in short allocation report (in point 1 above)

Trading Member Code

As provided in short allocation report (in point 1 above)

Client Code

As provided in short allocation report (in point 1 above)

CP Code

As provided in short allocation report (in point 1 above)

Allocated Collateral (I)

As provided in short allocation report (in point 1 above)

Margin Required (J)

As provided in short allocation report (in point 1 above)

Short Allocation (K= I-J)

As provided in short allocation report (in point 1 above)

Indicator

As provided in short allocation report (in point 1 above)

Reason Code*

To be reported by Member

Excess Collateral with NCL

To be reported by Member

Excess Collateral with MCCIL

To be reported by Member

Excess Collateral with MCXCCL

To be reported by Member

Excess Collateral with NCCL

To be reported by Member

* If reason code is updated as ‘01’ then the clearing member will also update the amount in the column pertaining to the respective CC.

Reason Codes

01 – Excess Collateral with other CC

02 – Value of securities sold for which EPI has been done by end of day to CC

03 – Trades done on behalf of NRI clients

04 – Trades executed for CP clients by trading members awaiting custodian acceptance (available only for TM’s)

05 – Trades executed in wrong client code codes (Only available for Indicator other than “E”)

06 – Allocation request submitted to ICCL however allocation request accepted later (Only available for Indicator other than “E”)

 

File format: CSV files

File Name: 

File name

Member type

SHORTALLOCATION_CM_CLGNO_DDMMYYYY_NN.CSV

CM

SHORTALLOCATION_TM_CLGNO_DDMMYYYY_NN.CSV

TM

Note :

·         Latest incremental no (NN) file to be considered for the respective member.

·         Each batch should contain entire records with reason code, wherever applicable

 

3.                  Response file to Clearing / Trading member for short allocation:

Response to member will be provided in the following format:

Date

As provided in short allocation report (in point 1 above)

Clearing Member code

As provided in short allocation report (in point 1 above)

Trading Member Code

As provided in short allocation report (in point 1 above)

Client Code

As provided in short allocation report (in point 1 above)

CP Code

As provided in short allocation report (in point 1 above)

Allocated Collateral (I)

As provided in short allocation report (in point 1 above)

Margin Required (J)

As provided in short allocation report (in point 1 above)

Short Allocation (K= I-J)

As provided in short allocation report (in point 1 above)

Indicator

As provided in short allocation report (in point 1 above)

Reason Code

As uploaded by Member in Short allocation report (in point 2 above)

Excess Collateral with NCL

As uploaded by Member in Short allocation report (in point 2 above)

Excess Collateral with MCCIL

As uploaded by Member in Short allocation report (in point 2 above)

Excess Collateral with MCXCCL

As uploaded by Member in Short allocation report (in point 2 above)

Excess Collateral with NCCL

As uploaded by Member in Short allocation report (in point 2 above)

Response*

S/R

Reason*

Reason will be given for rejected record

*ICCL remarks as per reason code provided by member

·         S stands for Successful import of record in the system

·         R stands for Rejection of record

– Reason to be populated as below:

§  Incorrect reason code

§  Invalid file details

§  Invalid file format

§  Negative amount in file

File format: CSV files

File Name: 

File name

Member type

SHORTALLOCATION_CM_R_CLGNO_DDMMYYYY_NN.CSV

CM

SHORTALLOCATION_TM_R_CLGNO_DDMMYYYY_NN.CSV

TM

 

4.                  Penalty file to Clearing / Trading member for EOD short allocation:

File format for penalty on End of day short allocation report:

Trade Date

 

Clearing Member code

 

Trading Member Code

 

Client Code

 

CP Code

 

Allocated Collateral (I)

 

Margin Required (J)

 

Highest intraday peak margin short reported (K)

 

End of day short margin reporting (L)

 

End of day short allocation of amount (M= J-I)

 

Intraday short allocation amount

Highest intraday short allocation amount

Final Shortfall (O = Max (K,L,M,N))

 

Penalty amount excluding GST (P=O*Penalty %)

 

 

File format: CSV files

File Name:

File name

Member type

SHORTALLOCATION_PNLCM_CLGNO_DDMMYYYY.CSV

CM

SHORTALLOCATION_PNLTM_CLGNO_DDMMYYYY.CSV

TM

 

In case of any clarifications, members may contact their respective Relationship Managers or below mentioned contacts:

 

Membership & Inspection Dept. for compliance aspect

+91-22-22728365/8788/5075/5744

iccl.membership@icclindia.com

  

For and on behalf of Indian Clearing Corporation Ltd.

 

 

Roanna Lewis

Sr. Manager

Membership & Inspection