than 70 % of irs trades currently being centrally cleared without regulatory mandate. cds market is still developing and it may take more time to achieve the necessary market activity to support central clearing of cds transactions. timeframe for guaranteed settlement of cds will be mandated after a critical level of volume is attained. • exchange or electronic platform trading : electronic platforms are available for transactions involving repos in government securities, irs, forward rate agreements and foreign exchange forwards. report of the working group on government securities and interest rate derivatives markets ( chairman : shri r. gandhi ) has also recommended introduction of an electronic swap execution facility ( electronic trading platform ) for the irs market, and consider introduction of a ccp which may provide guaranteed settlement of trades executed through the electronic platform. • reporting to trade repositories : as per existing regulatory guidelines, banks and primary dealers report irs / fra and foreign exchange derivatives transactions on ccil reporting platform. with regard to cds, all market makers must report all trades ( including client trades ) on the ccil ’ s reporting platform. presently, client trades in irs are also being reported by banks. conclusion 21. i am sure in this summit, you will all be discussing the credit investment market infrastructure, the various opportunities and challenges that the credit investment market offers and how to benefit out of this important segment of the financial market. i wish you all useful deliberations. 22. thank you all for your attention. bis central bankers ’ speeches

while capital market helped raising ₹ 10 billion worth of equity, bonds and debentures, banks extended credit worth ₹ 207 billion in that period. during the 1980s, the corresponding figures were ₹ 233 billion and ₹ 910 billion. in the 1990s, they were ₹ 1172 billion and ₹ 3950 billion respectively and in 2000s they were ₹ 2115 billion and ₹ 34206 billion respectively. in 2013 – 14, it was ₹ 556 billion and ₹ 9, 556 billion respectively. 18. while the capital market has been disappointing, the private placement market in the past twenty years has been good. though the issues thereat had been predominantly in the form of bonds and debentures, the growth in size has been very reassuring. it gained popularity from mid 1990s ; from 1995 – 96 to 2000 – 01, this market raised ₹ 752 billion, in the next ten years, it helped raise ₹ 7614 billion and in 2013 – 14, this market raised ₹ 3899 billion. 19. thus, the primary engine for indian investments is the credit market. despite all our efforts to develop corporate debt market, and calibrated increase in foreign capital, credit market remains the bulwark of indian investment scenario. otc market 20. in india, the small size of the otc derivatives market, low level of complexity in products and regulatory structure that mandates that validity of any otc derivative contract is contingent on one of the parties to the transaction being a regulated entity, resulted in orderly derivatives market development and lessened the concerns with regard to systemic risk. the otc derivative products were introduced in a phased manner keeping in view the hedging needs of the real sector. reserve bank has focused on improving transparency and reducing counterparty risk in the otc derivatives markets and fostered development of robust market infrastructure for trading, settlement and reporting of transactions. as india is committed to implementation of the g - 20 / fsb reforms, reasonable progress has been made in implementing the otc derivative reform measures in india. the status of reforms is as under : bis central bankers ’ speeches • standardization : the process of standardization is planned to be undertaken gradually. cds transactions are standardized in terms of documentation, coupon, coupon payment date, etc. irs on overnight index swap have been standardized from april 1, 2013. other benchmarks in irs would be standardized in a phased manner. • central clearing : calibrated steps towards central clearing of otc derivative transactions are being taken. more