Reserve Bank of India (RBI), has decided to introduce an electronic order matching trading platform for government securities on the Negotiated Dealing System (NDS). The NDS-Order Matching (NDS-OM) segment will be formally launched on August 1,2005.

Anonymous order-matching platform for trading in government securities which has been introduced with a view to encourage more retail participation will be catering to the trading requirements of all current NDS members (SGL account holders) as well as constituents of SGL account holders. This system will be purely order driven with all orders being matched based on strict price/time priority.

Other NDS members will be extended access to the on-line trading in next phase. The system will be an anonymous after matching system wherein identity of parties is nor revealed before or at the time of trade.

However, participants will continue to have the option of using the current system of reporting and trading platform of the NDS.

The settlement of both types of transactions would be integrated. Also the NDS-OM system will allow straight-through processing and the trades will eventually flow straight to CCIL in a ready to settlement stage.



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