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RBI/2005-06/132
IDMD.No. 766/10.26.65A/2005-06
August 22, 2005
All RBI Regulated Entities
NDS-OM – Counterparty Confirmation
The Negotiated Dealing System (NDS) for electronic
dealing and reporting of transactions in government securities was introduced
in February 2002. Subsequently, on August 1, 2005, RBI introduced the anonymous
screen based order matching module on NDS, called NDS-OM.
2. As per extant guidelines, all government
securities transactions have to be physically confirmed by the back offices
of counterparties. With respect to transactions matched on the NDS-OM module,
since CCIL is the central counterparty to all deals, exposure of any counterparty
for a trade is only to CCIL, and not to the entity with whom a deal matches.
Besides, details of all deals matched on NDS-OM are available to the counterparties
as and when required by way of reports on NDS-OM itself. In view of the above,
the need for counterparty confirmation of deals matched on NDS-OM does not arise.
3. However, all government securities transactions,
other than those matched on NDS-OM, will continue to be physically confirmed
by the back offices of the counterparties, as hitherto.
Yours faithfully
(B. Mahapatra)
Chief General Manager –in - Charge
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