The Reserve Bank of India has decided to implement the guidelines relating to introduction of CDS for Corporate Bonds effective December 1, 2011.
It may be recalled that Reserve Bank had issued Guidelines on CDS on May 23, 2011. Though these guidelines were to be effective from October 24, 2011, it was decided on October 20, 2011 that the implementation would be postponed to facilitate putting in place the necessary infrastructure. It has now been observed that the needed infrastructure is ready. Related Notification is as follows:-
RBI/2011-12/286
IDMD.PCD.2302/14.03.04/2011-12
November 30, 2011
To All Market Participants
Credit Default Swaps (CDS) for Corporate Bonds-Reporting Platform
A reference is invited to our circular IDMD.PCD.No. 5053 /14.03.04/2010-11 dated May 23, 2011 enclosing the Guidelines on Credit Default Swaps (CDS) for Corporate Bonds wherein it was indicated that Market-makers shall report their CDS trades with both users and other market-makers on the reporting platform of CDS trade repository within 30 minutes from the deal time.
2. It is advised that all market makers shall report their CDS trades in corporate bonds within 30 minutes of the trade to the Clearing Corporation of India Limited (CCIL) trade repository CCIL Online Reporting Engine (CORE) beginning December 1, 2011.
Yours faithfully,
(K K Vohra)
Chief General Manager
