National Stock Exchange (NSE) of India Ltd on Tuesday announced the launch of 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 namely all regulated entities, listed corporates and institutional investors. It will provide market participants range of options to seek a quote and to respond to a quote while keeping an audit trail of all the interactions, that is quoted yield, mutually agreed price and deal terms.
This will bring pre-trade transparency in the transactions of eligible debt securities. NSE will manage the RFQplatform and will specify various parameters for facilitating effective interactions among the participants.
The eligible transactions will be reported to the corporate bond platform and will be settled by the NSE Clearing Ltd.
The NSE RFQ platform will facilitate further electronification of the debt markets in India, said Managing Director and CEO Vikram Limaye.
"The platform will cover the entire process of seeking a quote for security, interacting with various participants, doing multiple rounds of negotiation and recording all these chains of events in an electronic form," he said in a statement.
Ajay Tyagi, Chairman of the Securities and Exchange Board of India (SEBI), said 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 could go a long way in developing bond market in India," he said.