Negotiated Dealing System-Order Matching

Negotiated Dealing System-Order Matching Latest News

Bloomberg has introduced the first electronic trade in Indian government bonds (IGBs) through its terminal by directly connecting to the Negotiated Dealing System-Order Matching (NDS-OM). 

About Negotiated Dealing System-Order Matching

• It was launched in 2005 by the Reserve Bank of India.
• It is a screen based electronic anonymous order matching system for secondary market trading in Government securities owned by RBI.
• Presently the membership of the system is open to entities like Banks, Primary Dealers, Insurance Companies, Mutual Funds etc.
• All central government securities, state government securities and treasury bills are tradable on the NDS-OM Web Module.
• Additionally, it allows members to negotiate bilaterally through the “Request for Quote” segment.
• The system is designed to bring transparency to secondary market transactions while enabling members to place bids and offers directly on the NDS-OM screen.
• There are two types of NDS-OM members, including
  • Direct Members: Direct members have current accounts with the RBI and can directly settle trades on NDS-OM.
  • Indirect Members: Indirect members do not have current accounts with the RBI and must settle through NDS-OM members that have direct accounts.
• Most foreign institutional investors have indirect access, while resident entities may have direct access.
• Trade Settlement: Under this trades are settled at T+1 and guaranteed by Clearing Corporation of India Limited (CCIL).
• Benefits
  • Wider market access; level playing field for all.
  • Immediate dissemination of market info
  • Lower transaction cost.

Source: BS

‹ ›