The Hindu Business Line : Electronic matching system for gilts trading launched

THE Reserve Bank Of India's electronic order matching system for trading in government securities (like trading in shares) has been launched on its Negotiated Trading System from today.

The electronic order matching system (NDS-OM) will co-exist with the telephone-based trading system as well as the exchange-based trading mechanism, RBI said in a release on Friday.

The use of the new trading module is voluntary. During the first phase, the NDS-OM will serve the trading requirements of all bnks, pimary dalers and financial institutions regulated by RBI that hold current NDS membership. Other NDS members will be extended access in the next phase. The option of extending NDS-OM to non-NDS members will be examined in due course, the release said.

The system will be purely order-driven, with all orders being matched based on strict price/time priority.

The system will be an anonymous order matching system wherein identity of parties is not revealed before or at the time of trade.

The Clearing Corporation of India Ltd will become the central counter party to each trade done on the system. The system will allow straight-through processing and trades executed will flow straight to CCIL in a ready-for-settlement stage.

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