Benefits
ü Reduction in counter-party exposure i.e. Risk of loss from counterparty default would be minimal due to proper margining for market risk.
ü Reduced settlement risk, more efficient clearing and settlement system.
ü Transparent and reliable valuation of outstanding positions for the market participants.
ü CCIL has been accorded the status of a QCCP – hence reduced capital requirement to the participants.
ü Translation of bilateral gross exposure to multi-lateral net exposure on CCIL.
ü Improved Operational & Liquidity Efficiency.