Clearing
Novation is a process in which IDClear positions itself between both parties in a transaction. When IDClear approves a transaction for clearing, the bilateral transaction is split into two separate transactions where IDClear acts as the buyer to the original seller and the seller to the original buyer for the related SBNT derivative transaction. The definition of Novation / Debt Substitution in the PBI is the process of terminating the original contract between the buyer and the seller and replacing it with two new contracts: one between the CCP SBNT and the buyer, and the other between the CCP SBNT and the seller. IDClear uses the Settle-to-Market (STM) concept for the daily mark-to-market calculation process.
In the clearing process, IDClear performs multilateral netting on contract positions (that have identical contract attributes) and netting of funds positions on the components of receivables and obligations listed in the Clearing Result List (DHK). Transactions on PUVA derivative contracts can be directly input by CCP PUVA members who are connected to the C-Guards clearing application, which is the clearing system for PUVA derivative transactions.
The types of transactions cleared by the CCP PUVA are Domestic Non-Deliverable Forwards (DNDF), foreign exchange derivative transactions against the rupiah in the form of forward transactions with a fixing mechanism carried out by the domestic market.
In the future, IDClear will also be connected to ETP Providers who have received approval from Bank Indonesia. Contracts that match in the ETP will be sent to the CCP for novation and clearing. IDClear, in carrying out its clearing function, will perform the novation process and calculate the positions of obligations and receivables for daily settlement as listed in the Clearing Result List (DHK). Settlement and collateral placement will use IDClear's accounts in BI-RTGS and BI-SSSS, which are segregated for operational purposes for CCP SBNT members.
