Reducing the cost of forex transactions in India by providing cost-efficient trading terminals. CCIL will provide the FX-CLEAR to the members free of charge where as similar available systems cost them Rs 50000/= to more than Rs 3 lakhs per month per terminal depending on the services they choose to have.

Offering enhanced value added trading features to meet the real needs of market relating to forex transactions. Some of the features like market by price (best 5), market by order (best 5), market movements, orders with price, time and quantity conditions etc. which are available in Order Matching Mode of FX-CLEAR are not available in other existing Forex Dealing System in India.

Enhancing the depth of the market through wider participation of banks. Currently, many banks have not availed the services of the existing Forex Dealing Systems because of the higher cost. As mentioned above, CCIL will provide the FX-CLEAR to its members free of cost, all banks in India will avail this service and thus CCIL would help in enhancing the depth of the forex market in India through participation of more banks.

CCIL will provide STP (Straight Through processing) for all trades in USD-INR done on FX-CLEAR . All deals concluded in USD-INR currency pair on CCIL’s dealing platform will be taken up for settlement by CCIL’s forex clearing and settlement system. This will include deals on both the Order Matching Mode as well as the Negotiation mode.

Reducing the counter-party and default risk by ensuring suitable settlement mechanism. The predominant risk is settlement risk which is the risk that settlement does not take place as expected. Settlement risk comprises both credit and market risks. The risk management system of CCIL for forex clearing and settlement system includes tools for managing credit risk by way of membership norms and member-wise Net Debit Caps (NDC) besides a loss allocation procedure and tools for managing market risks such through collateralised lines of credit, operation of a settlement guarantee fund etc.

By using the CCIL’s FX-CLEAR, the Members will have the advantages of CCIL’s institutional structure and standing, the Straight-Through Processing (STP) facility, cost efficient Forex Dealing, automatic Price discovery in addition to other qualitative benefits.