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.