The Hindu Business Line : CBLO volumes top Rs 1,000 cr

VOLUMES under the CBLO (collateralised borrowing and lending obligation), a facility offered by Clearing Corporation of India Ltd for banks and institutions to utilise their excess cash and securities — has crossed Rs 1,000 crore .on Tuesday.

Under the CBLO, a member of the Clearing Corporation (CCIL) can borrow cash from another member against the collateral of securities.

CCIL had launched "Collateralised Borrowing and Lending Obligation" on January 20, 2003 and has currently extended it to the members of the Negotiated Dealing System, who are members of the INFINET, a closed user group.

The membership of the CBLO segment has gone up to 59 and around 47 members are currently activated on the trading system, said a CCIL source.

The average daily volume under the CBLO has been around Rs 700-800 crore in the last few months.

CCIL proposes to provide the CBLO trading platform to non-NDS members (who do not maintain current account with the RBI) through the Internet and funds settlement in respect of their trades will take place at the settlement bank designated by CCIL.

The corporation has started offering the trading platform to corporates, mutual funds, co-operative banks and insurance companies, said the source.

The Internet trading platform will be made available to them for mock trading purpose initially before going live.