CCIL chief explains what financial markets will now need to keep pace with volatile geopolitics
Rao also underlined the need to address risks ranging from cyber threats to supply chain disruptions.
CCIL facilitates the clearing and settlement of a range of financial assets, including government securities and other money market instruments.
Rao said the next phase of development of CCIL will depend on the use of emerging technologies such as artificial intelligence and machine learning to improve operational efficiency, strengthen decision-making and increase system resilience. At the same time, market infrastructure institutions will need to contend with increasing competition from fintech firms and innovations such as distributed ledger technologies that are reshaping the way financial services are delivered.
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“We must also be ready to address disruptive innovations proactively and preemptively. Even as we face these challenges, we must be ready to offer a broader suite of risk management products in the markets where we operate,” Rao said at CCIL’s 25th anniversary event on Wednesday.
In this framework, CCIL aims to create a more adaptable and future-proof ecosystem, including redesigning trading platforms into unified workspaces that integrate trading, risk management, analytics and market data. Also read | RBI recommends measures to strengthen Prepaid Payment Instruments framework
Recently, the institution has also expanded into areas such as margin and collateral management for decentralized derivatives, Rao said.
As financial markets deepen and scale with economic growth, the focus will be on expanding the range of risk management products, improving market access and potentially globalizing services.
However, he said ensuring robust cybersecurity, operational flexibility and access to specialized capabilities will continue to be critical for CCIL as we navigate an increasingly complex and competitive environment.
