InvestorQ : Do I also benefit in equity market trades (cash trades) because of interoperability?
Mary Joseph made post

Do I also benefit in equity market trades (cash trades) because of interoperability?

Answer
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sara Kunju answered.
1 year ago


There is a benefit to the cash market trader too. Prior to interoperability, the capital allocated by the traders was sub-optimally utilized as the margins put up for trades in through one clearing house could not be used for trades in other clearing house. Interoperability resolves this problem as the margin put up for one can be used for the other and the entire process goes through without any additional effort or hitches.

There is another advantage. With interoperability, you can square off trades across exchanges. As a result, cross-exchange buying and selling can be construed as intraday if the net position amounts to zero. In such cases, intraday charges will be applicable, which are lower than the charges for delivery trades and even the STT is much lower in case of intraday trades.