Mumbai: Expanding its product basket, the country's newest stock exchange MCX-SX on Friday launched a dedicated debt market segment and announced commencement of live trading on this platform from Monday.
The dedicated debt segment was launched by MCX-SX on a day when its equity segment daily turnover crossed Rs 1,000 crore milestone, while turnover of its flagship stock index 'SX40' crossed Rs 500 crore mark.
Inaugurating the debt market segment of MCX-SX here this evening, Securities and Exchange Board of India (Sebi) Whole Time Member Rajeev Kumar Agarwal said he expects the exchange to make significant contributions in creating a vibrant debt market in the country, thus helping in raising of capital by the companies.
The exchange said that debt segment will go live from Monday, June 10, 2013.
The country's largest stock exchange NSE recently launched its dedicated debt platform, while BSE has also got an approval from Sebi for this segment.
MCX-SX said the new dedicated segment would facilitate trading and settlement in all debt securities on a single platform, in line with the mechanism in place globally in the fixed income markets.
"It would enable executing orders through an Anonymous Order Matching Trading Platform, where the order entry panel would facilitate to quote either in yield or in price terms. It is an interface that would enable users to see pricing fluctuations and market actions," the exchange said.
MCX-SX said that it would offer retail and institutional market for the debt segment in line with Sebi guidelines and the market timings would be from 9 am to 5 pm.
"With the launch of our dedicated debt segment as well as the equity segment turnover crossing Rs 1000 crore mark, we have crossed yet another milestone and demonstrated our commitment towards building a world class exchange for India," MCX-SX Managing Director and CEO Joseph Massey said.
MCX-SX received permission from Sebi to deal in equity and equity futures & options, interest rate futures and wholesale debt segments in July 2012. Consequently, it conducted a membership drive in September-October 2012 and finalised the necessary infrastructure, systems and procedures to begin trading.
It launched equity and derivatives trading in February 2013, followed by commencement of derivatives trading in flagship index SX40 in April. The live trading of SX-40 began in May. It also started listing service and conducted first IPO with Just Dial offering last month.
It has also got in-principle approval from Sebi for a dedicated SME platform, while the average daily turnover of the exchange has also increased substantially from Rs 11 crore in February to Rs 678 crore in May and to over Rs 1,000 crore so far in the current month.