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RBI eases primary dealers' exposure norms to QCCP 

April 2, 2014
Business Standard

To promote centralised clearing of OTC derivative products, the Reserve Bank today eased stand-alone primary dealers' exposure ceiling to a qualified central counter party by keeping the limit outside the existing 25 per cent of net-owned funds. 

The new norms would be effective Tuesday next, the central bank said in a notification. 

Clearing exposure to a qualified central counter party will be kept outside of the exposure ceiling of 25 per cent of its NOF applicable to a single counter party, the RBI said. 

The ceilings on single or group exposure limit would not be applicable where principal and interest are fully guaranteed by the government, it added. 

Read more: Business Standard

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