NDS OM RFQ Module Member Notification
Clearcorp
announces the introduction of ‘Request for Quote’ (RFQ) dealing mode for
secondary market trading in the Negotiated Dealing System – Order Matching
(NDS-OM) Platform. The RFQ mode shall be available for all trading members and
clients of NDS-OM for trading in a)
Government securities (G-Secs) other than liquid securities i.e.,
securities identified as liquid securities by FIMMDA for the purpose of
implementing the Short Sale (Reserve Bank) Directions, 2018, b) Treasury Bills and c) State Development Loans
The RFQ mode will facilitate bilateral negotiation between members as well as
clients of the NDS-OM system. Negotiations may be done with single or multiple
counterparties.
The RFQ mode is expected to improve liquidity in illiquid and semi-liquid
securities and also increase price efficiency. The concluded trades will be
captured in the platform and routed for settlement with no separate reporting
requirement. This is expected to enhance operational efficiency and facilitate
real time dissemination of market information. All transactions through the RFQ
mode will be subject to the extant risk management framework, and regulatory
limits, in the platform.
The RFQ Module will be operational with effect from October 5, 2020. Detailed
write up on the functionality and the technical release note will be mailed
separately to members.