NISM Series XIII Common Derivatives Certification Exam Notes

Page 122 Of 303

Go to:

  • Financial Crisis 2008: Highlighted systemic risk from OTC markets; led to push for exchange-traded derivatives.
  • OTC Clearing in India: CCIL provides trade guarantee for USD-INR forwards and swaps.
  • Standard and Exotic Products: Vanilla are standardized; exotic are customized.
  • Credit Default Swaps (CDS): Protect against credit events like defaults.
  • Innovation Impact: Better risk-return combinations, lower transaction costs, higher returns.

NISM Common Derivatives

MODELEXAM MODELEXAM®