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Sebi in process to develop interoperability framework for clearing corps

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


PTI Last Updated at 09 Aug 2018, 13:08 IST India
Sebi in process to develop interoperability framework for clearing corps
  • The interoperability would permit trading members to clear trades through a firm of their choice instead of going through the clearing corporation owned by the course on which the trade was executed. (Image Credit: Twitter)

Markets regulator 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, which handle settlement of trades on the respective stock exchanges.

The interoperability would permit trading members to clear trades through a firm of their choice instead of going through the clearing corporation owned by the course on which the trade was executed.

"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 utilization, opportunities of best execution across trading platforms as well as savings on the cost associated with membership," Sebi said in its annual report for 2017-18.

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

In August 2015, the Securities and Exchange Board of India (Sebi) had decided to hold public consultations on a new set of norms to enable interoperability of clearing corporations.

An expert committee chaired by eminent banker K V Kamath had suggested about interoperability among clearing corporations.

Major exchanges in the country include BSE and National Stock Exchange, both of which have their own clearing corporation arms.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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