NSE launches Request for Quote platform in debt securities

The National Stock Exchange (NSE) on Tuesday said it has launched Request for Quote (RFQ) platform for execution and settlement of trades which will allow market participants to transact in debt securities.

The NSE RFQ platform can be accessed by eligible participants -- all regulated entities, listed corporates and institutional investors, among others, the exchange said in a statement.

The platform will provide market participants a range of options to seek a quote and to respond to a quote, while keeping an audit trail of all the interactions which include quoted yield, mutually agreed price and deal terms. This will bring pre-trade transparency in the transactions of eligible debt securities.

"The launch of 'NSE RFQ platform' is an important milestone for the debt market. The single platform for multiple debt securities including corporate bonds and government securities etc could go a long way in developing bond market in India," Sebi Chairman Ajay Tyagi said while launching the platform.

NSE will manage the platform and will specify various parameters for facilitating effective interactions amongst the participants. The eligible transactions will be reported to the CBRICS reporting platform and will be settled by the NSE Clearing Ltd (NCL).

"The NSE RFQ platform will facilitate further electronification of the debt markets in India. The platform will cover the entire process of seeking a quote for a security, interacting with various participants, doing multiple rounds of negotiation and recording all these chain of events in an electronic form," exchange's MD and CEO Vikram Limaye said.

The platform is expected to increase the market activity in the debt markets along with bringing in required pre-trade transparency, he added.

Rival bourse BSE activated its RFQ platform on Monday that enables trade execution and settlement in debt securities.