The RBI announced on Friday that non-bank brokers registered with SEBI can now directly access the Negotiated Dealing System – Order Matching (NDS-OM), an electronic trading platform for secondary market transactions in government securities, on behalf of their clients. This move aims to widen access to NDS-OM, which is currently available to regulated entities and clients of banks and standalone primary dealers.
SEBI-registered brokers will be able to access NDS-OM subject to the regulations and conditions set by the Reserve Bank. Additionally, the RBI has set up a nine-member working group to conduct a comprehensive review of trading and settlement timings in markets regulated by the central bank. The group, led by RBI Executive Director Radha Shyam Ratho, will submit its report by April 30, 2025.
The RBI highlighted the importance of synchronized and complementary market and settlement timings in facilitating efficient price discovery and liquidity optimization. The working group will also assess the implications, benefits, costs, and challenges of revising current trading and settlement timings in financial markets.
The RBI noted various developments in recent years, including increased electronification of trading, availability of forex and interest rate derivative markets on a 24X5 basis, and enhanced participation of non-residents in domestic financial markets. The working group will identify any frictions and challenges related to trading and settlement timings in the markets.
Overall, these initiatives aim to enhance the accessibility and efficiency of financial markets while ensuring alignment with evolving market dynamics.
