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INTEROPERABILITY


Posted on 13-Jul-2019 Comments  0

Background:

SEBI issued the broad framework for interoperability among clearing corporations vide circular No.CIR/MRD/DRMNP/CIR/P/2018/145 dated November 27, 2018 to allow market participants to consolidate their clearing and settlement functions at a single clearing corporation irrespective of the stock exchange on which the trade is executed.

 Products and degree of choice for interoperability:

All products under the CM segment, F&O Segment, Currency Derivative Segments including interest rate derivatives and DEBT Segment except Tri-Party Repo and Trade Reporting platform will be covered under Clearing Corporation interoperability.  The interoperability arrangement is applicable only for the exchange traded products.   The order collection mechanism / schemes such as Offer for Sale, Mutual Funds Service Scheme, Buy Back Scheme / Tender offer schemes, Non-Competitive bidding, Primary bidding of SGB is not included under interoperability.   SLB is not included under interoperability since the scheme is operated by clearing corporation as an Approved Intermediary.

 In this scenario, Navia Markets Ltd (Tradeplus) is the clearing member in the Capital Market Segment and we have selected NSE Clearing Ltd (NCL) as the clearing corporation for clearing and settlement of trades in Capital Market Segment for NSE and BSE.  For Equity and Currency Derivative Segment, Navia Markets Ltd is the trading member and clearing trades through ICICI Bank Ltd as clearing member.  ICICI Bank Ltd is also associated with NSE Clearing Ltd (NCL) to clear and settle the trades in Equity and Currency Derivative Segments.

Due date for Interoperability:


Segment

Date

Cash Market

15th July 2019

Equity Derivative

29th July 2019

Currency Derivative

05th August 2019


Changes in the client level:


Due to this change, if the client purchase and sale shares in NSE and BSE Exchanges, the obligations are clubbed and posted in the NSE CM Segment ledger and also obligations are netted and shown together for the NSE and BSE trades.  

 For example, if you purchase a security in NSE Exchange and sell the same during the day in BSE Exchange, both the positions will be netted off and STT will be charged as intra-day STT instead of delivery STT.  To understand the STT details, please click here.

 Further, there is slight change in the contract note.  Currently contract notes are provided with exchange wise details.  Post interoperability, trade details are provided instrument wise and exchange details where the trades are executed will be marked next to the respective trades.

 There is no changes in the commodity segment for the interoperability and existing process will continue.

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