Published On: Sat, Jun 8th, 2013

MCX-SX launches Dedicated Debt Segment

Joseph Massey, MD& CEO of MCX-SX

Joseph Massey, MD& CEO of MCX-SX

Adding yet another milestone to the recent and rapid spate of developments at MCX Stock Exchange (MCX-SX), the Exchange launched its dedicated debt market segment. MCX-SX also announced that the Equity and Equity derivatives segment turnover has crossed Rs 1,000 crore and turnover of derivatives on its flagship index ‘SX40’ has crossed Rs 500 crore mark.

The debt market segment of MCX-SX was inaugurated by Shri. Rajeev Kumar Agarwal, Whole Time Member of Securities and Exchange Board of India (SEBI) at a ceremony attended by prominent industry leaders and stalwarts of the capital market, banking and financial sectors.

The MCX-SX debt market segment envisions to bring the debt segment participants together by offering them transparency and liquidity on a single platform for all debt securities and all mechanisms of trading and settlement that the industry has been using globally in the fixed income market. It combines the best of both the OTC and the exchange traded market and will offer innovations and new features, which will be the key differentiator. 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.

In line with SEBI guidelines, MCX Stock Exchange will offer Retail and Institutional Market for the Debt segment, including Request for Quote (RFQ) and Negotiated Platform.

The Retail Market will offer lot sizes of 1 bond (tick size 0.01), Rs. 1 crore (tick size 0.0001) and Rs. 5 crore (tick size 0.0001). The market timings would be from 9 am to 5 pm. Trades done in retail market will be settled on a DVP III (net Basis) on T+2 day and there would be a settlement guarantee.

Instruments tradable in Institution Market will have lot size of Rs. 5 crore (tick size 0.0001) and Rs. 1 crore (tick size 0.0001). Settlement will be on DVP I Method and settlement guarantee and margins would not be applicable. Settlement on DVP III Method will have a settlement guarantee.

Speaking on the occasion, Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI, said, “I congratulate MCX-SX on the launch of its dedicated debt segment. I firmly believe that MCX-SX will make significant contributions in creating a vibrant debt market in India, which has a critical role to play in raising capital for fuelling the growth of economy.”
Shri Joseph Massey, MD&CEO, MCX-SX, added, “With the launch of our dedicated debt segment as well as the Equity Segment turnover crossing Rs. 1000 cr mark, we have crossed yet another milestone and demonstrated our commitment towards building a world class exchange for India. We are happy to receive a very encouraging response from across the industry.”

The debt segment of MCX-SX will go live from Monday, June 10, 2013.

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