Market Transactions
Tri-party Repo Market (TRM) Platform in Debt Segment is an online web based, anonymous, order matching & multilateral trading platform for tri-repo on eligible corporates debt securities
Under the tri-party repo mechanism participants would place borrow and lend orders on the platform provided by the Exchange. Before placing an order, participants desirous of borrowing would provide eligible collateral and participants desirous of lending would provide margins. Both borrowing and lending orders would be validated against the collateral limits and margins available in the respective borrowers and lenders account.
The TRM Platform shall consist of two types of users - ADMIN and 'USER/DEALER'. The Exchange shall provide ADMIN id to participants on request basis. Thereafter the ADMIN user shall create the USER/DEALER log in for transactions on the platform. The detailed user manual of the platform shall be made available in the log-in screen.
The type of repo would be Basket Repo. The Basket Repos would facilitate borrowing and lending of funds against baskets comprising of multiple securities.
The securities eligible to be included in the basket shall be based on criteria like tenor, rating, instrument category, instrument type or any other attribute decided by the relevant authority. The number of securities in each basket and number of baskets to be made available would be decided by the relevant authority from time to time.
The tri-party repo shall be available on the following basket types on TRM platform.
| Repo Type | Security | Issue Name | Repo Description |
|---|---|---|---|
| BS | CBAAA | <3Y | Corporate Bonds with Residual Maturity up to 3 years with AAA rating |
| BS | CBAAA | >3Y | Corporate Bonds with Residual Maturity greater than 3 years with AAA rating |
| BS | CPA1 | <1Y | Commercial Papers with Residual Maturity up to 1 year with A1 rating and above |
| BS | CDA1 | <1Y | Certificate of Deposits with Residual Maturity up to 1 year with A1 rating and above |
List of securities in the respective basket types shall be communicated by NSE Clearing from time to time
The best borrow order would match with the best lend order. The best borrow order in the basket repo would be the one which seeks to borrow at the highest repo rate. The best lend order in the basket repo would be the one which seeks to lend at the lowest repo rate.
The best repo rate for a lend order would be the borrow repo rate equal to or more than the lend repo rate. The best repo rate for a borrow order would be the lend repo rate equal to or lesser than the borrow repo rate.
For Pro order (PRO): If an active Pro order is likely to match with a passive Pro order belonging to the same member-proprietary combination in the same order book, then active or passive order (full or partial as the case may be) as per the option set in order entry shall be cancelled by the exchange with rejection message "Self trade - Order cancelled."
The provisions of Trade Annulment applicable for order matching platform of Debt Segment as specified in NSE Cir No-NSE/DS/30742 dated September 11, 2015.
The operating range would be +/- 100 basis of the applicable rate (base rate). The base rate would be the RBI Repo rate or such other rate as specified by the Exchange. Initial trigger point for relaxation of price band would be +/- 75 basis point from base rate and based on the rate movement, relaxation of 100 basis point, 200 basis point and so on would be carried out towards the rate movement. The Exchange would take into consideration factors such as movement in the price movement in underlying market, repo rate on government securities, liquidity trends in the market, any news on interest rates and its likely impact, etc. while relaxing such price bands.
Trading Members can generate & download the current day order and trade report from the USER/Dealer and ADMIN log in. The report generated from USER/Dealer level log in shall contain orders and trades of the respective user whereas the report downloaded from the ADMIN level login shall contain all the orders and trades of member. The format of order & trade report are provided in Annexure-2 & 3 respectively.
Updated on: 04/01/2023
