The guidelines prescribe the capital requirements for banks’ exposure to qualified CCPs (QCCPs) and non-qualified CCPs. One of the significant aspects in the guidelines is that it has been proposed to treat the exposures to the Clearing Corporation of India Ltd (CCIL) on net basis.
In cases, where the CCIL provides guaranteed settlement, banks may reckon their total replacement cost (MTM) on net basis, i.e., on net replacement cost as part of trade exposure determination. This would provide significant capital relief to banks. 43. In this context, an issue that is receiving close attention of policy makers is increase in concentration risks of the CCPs.