MSE-led clearing house to settle trades on rival bourse ICEX

MUMBAI: The Metropolitan Clearing Corporation of India, a subsidiary of Metropolitan Stock Exchange (MSE), will clear and settle the trades executed at Indian Commodity Exchange (ICEX) from this month. This is the first time a clearing corporation will settle trades done on rival exchanges and for diverse segments — commodities, stocks and currencies.

Capital markets regulator Sebi recently allowed interoperability among clearing corporations mainly to reduce trading cost. Different exchanges have their own clearing corporations till now, which handle settlement of trades on the respective stock exchanges.

Metropolitan Clearing Corp will act as the counterparty for all trades to be executed on ICEX, and guarantee settlement. Accordingly, the associated risks will also be assumed and handled by the Metropolitan. So far, the clearing and settlement department of ICEX was handing post trade activities.


“Universal exchange norms enable exchanges to explore more asset classes to enhance business” said said Balu Nair, managing director, MCCIL. “As a clearing corporation, our preparedness to clear commodity derivatives in addition to existing asset classes will better equip us to cater to requirements of universal exchanges,” Nair added.