NATIONAL STOCK EXCHANGE OF INDIA

CURRENCY DERIVATIVES OPERATIONS

CIRCULAR

 

Circular No.: NSE/CD/031/2009                                           

Download No. NSE/CD/12856

Date:  August 6, 2009

 

Dear Members,

 

Sub: Mock trading in CDS on Saturday, August 8, 2009

Mock trading in Interest Rate Futures

NEAT CDS Version 1.0.6

 

The Exchange will be conducting a mock trading session in the Currency Derivatives Segment on Saturday, August 8, 2009 as per the following schedule:

 

Activity

Time (hrs)

Normal Market  open time

10:00

Normal Market close time

11:00

Pre-open Time

11:05

Normal Market  Re-Open time

11:10

Normal Market close time

12:00

Position Limit/Collateral value Set up cut off time/ Trade modification end time

12:15

Live Re-login Activity

 

Live Re-login start time

14:00

Broadcast of mock successful / unsuccessful message

14:15

Live Re-login close time

14:30

 

Members are cautioned to note that upon successful mock trading, new NEAT-CDS Version 1.0.6 will be implemented in live environment with effect from Monday, August 10, 2009 and thus without installation of this new version, users will not be able to trade in live environment from Monday, August 10, 2009.

 

The following operational instructions are annexed herewith:

Annexure 1: Important instructions regarding mock trading session

Annexure 2: Installation procedure for NEAT CDS (Version 1.0.6)

Annexure 3: Precaution and procedure for reverting to earlier version

Annexure 4: Important information about Interest Rate Futures contracts

Annexure 5: New functionalities

 

Members may kindly note that live trading in Interest Rate Futures will not be available from Monday August 10, 2009.

 

For any clarifications, members are advised to contact the following officials:

Mr. Vikramaditya Delima / Mr. Vikas Mishra on 26598131 or Mr. Arvind Goyal on 26598164.

 

For any technical assistance kindly contact the HELPDESK on 26567500

 

For and on behalf of

National Stock Exchange of India Ltd.

 

 

 

Suprabhat Lala

Assistant Vice President

ANNEXURE – 1

 

Important Instructions regarding mock trading

  1. Trades resulting from the mock trading session shall not attract any obligation in terms of funds and / or securities pay-in and pay-out. Members are also requested not to transfer any data files for this mock trading session. 

 

  1. The successful / unsuccessful outcome of the mock trading session shall be intimated to members through a message broadcast as per the mock trading schedule above. Members are advised to also refer to the website of NSE at www.nseindia.com for any information which may be updated by the Exchange regarding the mock session.

 

  1. Members using NEAT CDS and CTCL facility (using their CTCL software) are advised to participate actively in the mock trading session and are required to re-login into live environment during the above mentioned timings to check the connectivity and also to avoid login problems on Monday, August 10, 2009.

 

 

ANNEXURE – 2

Installation procedure for NEAT CDS (Version 1.0.6)

 

Precautions:

  • Members are advised to install the new version only after the end of live trading hours and after all end of day activities have been completed on Friday, August 7, 2009.
  • Members are advised to take back up of all report files before upgrading the software.
  • Members are advised to save the client master details in a file using the save option given on client master dialog (Do not keep the file in NEAT-CDS folders).

 

Installation:

·         Installation files shall be available after 5 PM on Friday, August 7, 2009.

·         Installation files can be downloaded from NSE EXTRANET path /cdsftp/cdscommon/NEATCDS106

  • Download the setup file ‘NEATCDTWSSetup.exe’ to your hard disc in the root directory (i.e. C:\ or D:\ or E:\).
  • Go to the drive where NEATCDTWSSetup.exe is copied.
  • Double click on the NEATCDTWSSetup.exe.
  • The files will be extracted with the window pop up ‘NEATCD TWS Installer extracting files’.
  • It will be followed by ‘NEATCD Installer’ pop up window. Installation drive (where application will be installed) will be C: by default.
  • The user can change the default installation drive to any other local drives (e.g. D: or E:)
  • Click on ‘Install’ button on this pop up window and follow the installation instructions.
  • Message of successful installation will be displayed once the complete application is installed.
  • The user can run NEATCDS TWS application by double clicking on either of the following:
    1. NEATCDS TWS shortcut icon created on the desktop.
    2. NEATCDS TWS entry in the ‘Programs’ sub-menu of the ‘Start’ menu.
    3. NEAT-CDS.exe located in the NeatCDDB-TWS directory in the installation drive. 

 

Updating the new version with latest data:

·         Download following files from NSE EXTRANET path /cdsftp/cdscommon/ onto the logon drive:

1)      cd_contract.gz (Members are advised to take this file on Saturday August 8, 2009)

2)      cd_participant.gz

3)      cd_spd_contract.gz

§  Unzip the above files

§  From the log on screen click on the “UPLOAD” button to update contracts & participants details.

 

 


ANNEXURE – 3

 

Precautions and procedure for reverting to earlier version 1.0.5

 

These instructions are required to be followed to ensure that members are able to revert back to old version of NEATCDS 1.0.5 and trade efficiently on Monday, August 10, 2009 in the unlikely event of the mock being declared unsuccessful.

 

Steps to be followed for reverting to old version of NEATCDS:

  • Download the set up file for old version ‘NEATCDTWSSetup.exe’ from NSE EXTRANET path cdsftp/cdscommon/NEATCDS105 to your hard disk in the root directory (i.e. C:\ or D:\ or E:\). If prompted, choose to overwrite the existing file. Kindly choose the same drive where the proposed new version was installed.
  • Go to the drive where NEATCDTWSSetup.exe is copied.
  • Double click on the NEATCDTWSSetup.exe.
  • The files will be extracted with the window pop up ‘NEATCD TWS Installer extracting files’.
  • It will be followed by ‘NEATCD Installer’ pop up window. Installation drive (where application will be installed) will be C: by default.
  • The user can change the default installation drive to any other local drives (e.g. D: or E:)
  • Click on ‘Install’ button on this pop up window and follow the installation instructions.
  • Message of successful installation will be displayed once the complete application is installed.
  • The user can run NEATCDS TWS application by double clicking on either of the following:

a.       NEATCDS TWS shortcut icon created on the desktop.

b.      NEATCDS TWS entry in the ‘Programs’ sub-menu of the ‘Start’ menu.

c.       NEAT-CDS.exe located in the NeatCDDB-TWS directory in the installation drive. 

§  From the log on screen click on the “UPLOAD” button to update the contract & participant details.

 

 

 

 


ANNEXURE – 4

Brief information about Interest Rate Futures and how to trade in them during mock

 

For the mock trading session, four interest rate futures contracts with quarterly expiries shall be available for trading as follows:

Instrument

Symbol

Expiry Date

FUTIRD

10YGS7

16SEP2009

FUTIRD

10YGS7

18DEC2009

FUTIRD

10YGS7

22MAR2010

FUTIRD

10YGS7

21JUN2010

 

 

Most Important instruction 1:

 

To be able to setup and trade in the Interest Rate Futures contracts during the mock trading session, members are required to take the cd_contract.gz file from Extranet path /cdsftp/cdscommon on the morning of Saturday August 08, 2009 and upload the unzipped file in NEAT-CDS.

 

Use of any older cd_contract.gz file will result in inability to setup and trade in Interest Rate Futures contracts during the mock trading session.

 

Most important instruction 2:

 

On Monday August 10, 2009, Members are advised to re-install the new NEAT-CDS (Version 1.0.6) once again and take the cd_contract.gz file from Extranet path /cdsftp/cdscommon and unzip and upload the same in NEAT-CDS so as to remove the unusable Interest Rate Futures contracts from their LDB.

 

Members using CTCL application are also advised to update their local database with cd_contract.gz file from Extranet path /cdsftp/cdscommon and unzip and upload the same so as to remove the unusable Interest Rate Futures contracts from their LDB.


ANNEXURE – 5

New functionalities in NEAT CDS Version 1.0.6

 

 

Yield in the Order Entry/ Oder Modification/ Order Cancellation window and Market Watch:

For IRD contracts in the order entry/modification/cancellation window a new field is provided to show Yield at limit price entered for the contract. If user opts to place an order at market price text ‘YIELD’ will be displayed in the yield field. User is not allowed to modify the Yield field.

In market watch new columns are introduced to display yield at best buy price, best sell price and last traded price for the contract. This yield will be automatically updated with the change in the best buy price, best sell price and last traded price for the contract. By default only yield column for last traded price will be displayed on the market watch. User may select yield column for best buy price & best sell price.

 

Focus of price field at the time of order entry and order modification:

Presently at the time of order entry, focus is on paisa part of the price field, where order entry is defaulted from market watch and passive order on opposite side is available.

 

A new menu item ‘Limit Price Focus’ under Tools option in menu bar is now provided. This option can be Checked / Unchecked. When this option is toggled a Message Box with appropriate message will be displayed. By default this option will be Checked i.e. focus will be on the paisa part of price field in the order entry and modification window. If this option is Unchecked focus will be on rupee part of price field in the order entry and modification window.

 

Collateral Limits for all TM/Participants.

A New facility is provided to view collateral limits of all the TM/Participants under a CM/PCM. An option ‘View All’ is provided in the Collateral Limit Setup tab of User / Branch Order Value Limits window.

 

Disclosed Quantity Orders

A disclosed quantity order is designed to allow a dealer to purchase/sell a certain total quantity by disclosing only a pre-specified proportion of the total ordered quantity at a time.

 

1.      Orders with Disclosed Quantity (DQ)

Matching an order with a disclosed quantity is similar to a regular lot book with the following additions:

·                  If an active order with disclosed quantity cannot trade its total quantity, it will be written on to the RL book in the Price-Time priority. The disclosed order quantity will be determined as follows:

-        If the remaining order quantity is less than or equal to the original disclosed quantity, the disclosed order quantity attribute will be lost and set to the remaining order quantity

-        Each time the disclosed quantity is replenished; the order will be removed from its current position, re-timestamp and added to the RL Book

 

2.      Disclosed Quantity (DQ) Percentage

The value set for this parameter ensures that a minimum disclosed quantity is entered as compared with the total order quantity.