YOU ARE ON THE NEW NSE WEBSITE, ACCESS THE OLD WEBSITE ON THE URL www1.nseindia.com OR CLICK HERE

Login to

You will be redirected to
another link to complete the login

Feedback
Login to Exchange, Mutual Fund, NCFM

FAQs on RFQ


Background:

In order to improve the liquidity in the debt market, the Exchange in early 2020 introduced the web-based Request for Quote (RFQ) platform thus providing for interaction amongst the market participants who wish to negotiate transactions amongst themselves. The platform is a participant-to-participant model where an initiator may request other participants for a quote in various eligible Fixed Income/ Debt securities.

RFQ platform provides an electronic form of transacting in OTC deals and provides users a range of options to seek and respond to a quote, while keeping an audit trail of all the interactions thus bringing about pre trade transparency for over-the-counter transactions in eligible securities.

NSE Request for Quote platform (NSE RFQ) is a platform meant for execution and settlement of trades. It allows market participants to transact in debt securities by requesting quotes from number of participants simultaneously and transact thereafter based on mutual agreement on the deal parameters.

The key features of the NSE RFQ platform are as below:

  1. Web based platform – hosted on NSE CBRICS environment
  2. Quotes can be requested from specific group/entire market
  3. Identity can be kept anonymous/disclosed
  4. Limit setup at Entity, Counterparty, Portfolio, Issuer, Dealer, Single order level
  5. Yield & price calculation using cash flows from term sheet
  6. CBRICS reporting and settlement after price confirmation

The term ‘Participant’ shall mean all regulated entities, Listed Corporates, Institutional Investors as defined under SEBI ICDR Regulations, 2018, All India Financial Institutions, and any other entity as allowed by Exchange from time to time.

The procedure for existing registered participants of CBRICS platform to operate on the NSE RFQ platform is as follows:

  • Using existing CBRICS log-in credentials from Admin user, accept the ‘Terms and Conditions’ of the platform through click wrap undertaking.

The procedure for new participant to operate on the NSE RFQ platform is as follows:

  • Complete the existing registration procedure of CBRICS.
  • Using CBRICS log-in credentials from Admin user, accept the ‘Terms and Conditions’ of the platform through click wrap undertaking.

No, the NSE RFQ platform is not an automated order matching trading platform. The participant, once satisfied with all deal parameters accepts the deal of their choice.

Yes, participants can request quotes from the entire market. Participants will have to select access as ‘OTM’ (one to many) to request quotes from all participants who have access to RFQ Platform. In order to request quote from selected participants, select access as ‘OTO’ (one to one).

With effect from December 1, 2021, option to select deal type as ‘Brokered’ or ‘Direct’ is available for both OTM (one to many) and OTO (one to one) deals.

Yes, participants will have an option to keep identity anonymous or disclosed based on their choice.

No, negotiations are strictly one to one, other market participants cannot view them.

Participant while initiating a quote, will have to choose negotiating condition as ‘Fixed’. In this case, responder will have an option to ‘accept’ or ‘ignore’ the quote and no option to negotiate.

Size of RFQ should be in multiples of face value with minimum size to be accepted as Rs. 5 lakhs or face value, whichever is higher.

Yes, the NSE RFQ Platform has a built-in yield-price calculator for securities where cash flows are available.

No, all deals in corporate bonds shall be reported on CBRICS platform automatically. However, in case of CPs and CDs, participants have to follow the existing mechanism for reporting deals to F-TRAC platform.

The list of eligible securities for RFQ Platform would include corporate bonds, securitized debt instruments, municipal debt securities, Government securities, State development loans, Treasury bills, Commercial papers and Certificates of deposit or any other security as specified by Exchange from time to time.

Yes, demat account is mandatory when transacting in G-sec, SDL, T-bills on NSE RFQ platform

The deals may take place on all days in line with the CBRICS holiday calendar. The G-sec, T-bills and SDLs will be available only with settlement mode of T+1. The typical working hours are as under:

Market Hours

Instruments

Business / Working Days

10:00 am to 03:30 pm for T+0, T+1 settlement

CP / CD

Monday to Friday

09:00 am to 04:00 pm for T+0 settlement

Bonds*

Monday to Friday

09:00 am to 05:00 pm for T+1 settlement

Bonds, G-sec, SDL and T-bills

Monday to Friday

*Bonds (Corporate Bonds, Securitized debt instruments, Municipal Debt securities)

Exchange may revise the market timings after providing prior notification to the market participants.

The Exchange/Clearing Corporation may initiate appropriate penal actions as specified by SEBI/Exchange/Clearing Corporation from time to time. The penal actions would include, but not limited to non-participation on the RFQ platform for a given period. Any penal actions for no-participation of the RFQ Platform will be jointly coordinated among all operating RFQ Platforms in the market. The following penal actions are proposed in case of failure to settle deals transacted on the RFQ platform.

Period

Instance of deal failure

Withdrawal of RFQ platform access for

First month of RFQ launch

Any

No action

Next six months

Two instances

15 days

Subsequent period

Single instance

15 days


Download FAQs on RFQ (.pdf)

Disclaimer:

“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time. While reasonable care has been exercised to ensure that the information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”

Updated on: 05/04/2022
Quick Links