Sebi issues norms for interoperability among clearing corporations

With an aim to reduce trading costs regulator Sebi Tuesday came out with a framework for interoperability among clearing corporations (CCPs), which will be operationalised by June 1, 2019. At present, different bourses have their own CCPs , which handle settlement of trades on the respective stock exchanges. The interoperability would permit trading members to clear trades through a firm of their choice instead of going through the CCP owned by the bourse on which the trade was executed. In a circular, Sebi said, interoperability framework will be applicable to all the recognised CCPs excluding those operating in International Financial Services Centre. The regulator asked stock exchanges and CCPs to “take all necessary steps to operationalise interoperability at the earliest but not later than June 1, 2019”.

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