MCX-SX's clearing arm eligible OTC trade in corp bonds: RBI

MCX-SX's clearing arm eligible OTC trade in corp bonds: RBI Mumbai: The Reserve Bank Wednesday approved stock exchange MCX-SX's clearing arm as an eligible entity for clearing and settlement of all 'over the counter' (OTC) trade in corporate bonds.

The other two eligible entities are NSCCL and ICCL, which are part of NSE and BSE groups, respectively.

"It has been decided that MCX-SX Clearing Corporation Limited is also an eligible entity for clearing and settlement of all OTC trades in corporate bonds in addition to NSCCL or ICCL," an RBI notification said.

The central bank further said MCX-SX Clearing Corporation is also an eligible entity for clearing and settlement of all OTC trades Certificates of Deposit (CDs) and Commercial Papers (CPs).

Also, the primary dealers are permitted to undertake transactions in securities among themselves or with non-banks clients through members of the MCX Stock Exchange in addition to NSE, OTC Exchange of India and BSE, the RBI said in a separate notification.

MCX-SX launched dedicated debt market segment on June 7.

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.

The MCX-SX's dedicated segment 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.

MCX-SX received permission from Sebi to deal in equity and equity futures & options, interest rate futures and wholesale debt segments in July 2012.

It launched equity and derivatives trading in February 2013, followed by commencement of derivatives trading in flagship index SX40 in April.

PTI