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The benefits of settling trades through CCIL are as under:
| 1. Establish a safe institutional structure for clearing and settlement of trades |
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To provide efficient settlement system |
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Novation - CCIL as Central Counterparty |
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Guaranteed Settlement |
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Lower Operational cost |
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| 2. Bring about efficiency in transaction settlement process |
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Multilateral Netting benefit |
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Efficient funds Management |
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Short sale of securities |
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Rollover of Repo trades |
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When Issued Market |
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| 3. Insulate financial system from shocks arising from operations related issues |
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Mitigation of Systemic Risk |
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Alleviation of Credit Risk |
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Reduction in counterparty exposure. (the exposure is extinguished upon acceptance of trades for settlement.) |
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