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Sebi in process to develop interoperability framework for clearing corps

In August 2015, Sebi had decided to hold public consultations on a new set of norms to enable interoperability of clearing corporations

Press Trust of India  |  New Delhi 

Sebi. (Photo: Kamlesh Pednekar)
Securities and Exchange Board of India. File photo: Kamlesh Pednekar

Sebi is in the process of putting in place a framework for interoperability among clearing corporations — a move that will reduce trading cost.

At present, different bourses have their own clearing corporations to handle settlement of trades on the respective stock exchanges.

The interoperability will permit to clear trades through a firm of their choice, instead of going through the clearing corporation owned by the bourse on which the trade was executed.


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“The regulator is in the process of developing a framework to enable interoperability among clearing corporations to ensure cost advantages for members, in the form of enhanced margin utilisation, opportunities of best execution across trading platforms, as well as savings on cost associated with membership,” Sebi said in its annual report for 2017-18.

The move assumes significance in the wake of disruptions in the functioning of a stock exchange and the respective clearing corporation in the recent past.

In August 2015, Sebi had decided to hold public consultations on a new set of norms to enable interoperability of clearing corporations.

A committee chaired by had recommended interoperability among clearing corporations. The major exchanges in the country and both have their own clearing corporation arms.

First Published: Fri, August 10 2018. 00:26 IST
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