Applicability of Principles of Financial Market Infrastructures (PFMIs) on Commodity Derivatives Exchanges
Summary
This circular designates specific commodity derivatives exchanges as systemically important Financial Market Infrastructures based on their annual turnover. It mandates that these designated exchanges comply with the Principles for Financial Market Infrastructures (PFMIs) applicable to Central Counterparties until their clearing functions are transferred. The directive is issued under Section 11(1) of the SEBI Act to ensure robust financial market infrastructure.
Text
Commodity Derivatives Exchanges (currently providing in-house clearing services) having annual turnover of more than INR 5 Lac Crore in previous financial year shall be deemed to be systemically important FMIs.
The abovementioned Commodity Derivatives Exchanges shall be required to comply with the PFMIs specified by CPSS-IOSCO as applicable to CCPs until their clearing and settlement functions are transferred to recognised clearing corporations.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Exchanges are also advised to bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on the website.
Source: SecMarx — Applicability of Principles of Financial Market Infrastructures (PFMIs) on Commodity Derivatives Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.