RBI panel recommends retaining current trading hours for forex markets
Market buying and selling timing for name/discover/time period cash is 9 am to five pm, whereas for repo in authorities securities it’s 9 am to 2.30 pm.
“Retain the present market hours for the international alternate markets (OTC and exchange-traded),” stated the report of the Working Group to undertake a complete overview of buying and selling and settlement timings of markets regulated by the Reserve Financial institution.
It has additionally instructed to take care of the settlement mechanism of a single assured settlement of OTC international alternate transactions by CCIL every day.
The panel has instructed extending the decision cash market timings to 7 pm. Concomitantly, the reporting window for NDS-Name transactions, together with for cancellations, must also be prolonged to 7:30 PM.
It has additionally instructed to unify and lengthen the timings of market repo and TREP buying and selling hours until 4 pm.
The panel has submitted its report, and the RBI on Friday positioned the identical on its web site for feedback from stakeholders.
The suggestions are aimed toward facilitating additional market growth, value discovery and optimisation of liquidity necessities.
With regard to the market hours for the federal government securities market, the group has advisable that the present timings (9 am to five pm) be continued with.
Nonetheless, put up onshore market hours, transactions in authorities securities with non-residents may very well be permitted throughout a time window between 5 pm and 11:30 pm.
It has additionally advisable that such transactions, if permitted, be reported to NDS-OM on T+1 day earlier than onshore market hours and settled on a T+2 foundation.
The market timings within the monetary markets regulated by the Reserve Financial institution embrace the cash market, authorities securities market, international alternate market and markets for rate of interest.
The final complete overview of market timings for monetary markets regulated by the Reserve Financial institution was undertaken in 2019.
Over the previous couple of years, there have been vital developments within the monetary markets. As an illustration, the dimensions of various home markets has elevated considerably and the variety of contributors in several markets has additionally elevated as has the variety of merchandise.
Non-residents’ participation in Indian spinoff markets has elevated pursuant to regulatory modifications facilitating such participation whereas such participation has additionally elevated within the authorities securities market put up inclusion of presidency securities in world bond indices.
The panel famous the necessity for a periodic overview of market buying and selling and settlement timings to make sure that they remained related given the evolving market microstructure.
