Correct answer: D.

A CCP concentrates exposures among clearing members, which makes the resulting counterparty credit risk more transparent and easier to monitor than a web of bilateral exposures.

• A is not the best answer here: a CCP can improve standardization and netting, but that does not automatically mean a CCP position is easier to exit in all cases.
• B is false because CCP-cleared positions typically require both initial and variation margin.
• C is false because clearing through a CCP does not turn transactions into uncleared trades; it does the opposite by centralizing clearing.

So the true advantage stated here is that the concentrated exposures make credit risk better understood.