New Delhi, Aug 17 (IANS) The clearing corporation of BSE — BSE Clearing Limited — on Monday launched three‑working‑day contracts in the Securities Lending & Borrowing segment to provide greater flexibility for short‑term securities borrowings and delivery requirements.
The statement from BSE Clearing Limited said the shorter tenor can also facilitate inter-exchange arbitrage and greater price alignment across trading venues, enabling participants to respond more efficiently to temporary market opportunities.
The initiative builds on the flexibility provided under SEBI’s SLB framework for introducing contracts of different tenures based on the evolving needs of market participants.
The contracts will feature a T+1 first leg and a T+3 reverse leg, excluding settlement holidays, and will initially be available for securities in the F&O segment under the “D” series prefix, the statement said.
The shorter-tenor contracts provided market participants with an additional avenue for short-term securities borrowing and lending through the BSE SLB platform.
The SLB platform will continue to operate through an automated, screen-based order matching mechanism based on price-time priority, the statement noted.
There will be no foreclosure in the event of an AGM (Annual General Meeting) or EGM (Extraordinary General Meeting), and the contracts will not have a facility for Repay, Recall or Rollover.
“The introduction of shorter-tenor SLB contracts is an important step towards making the securities lending ecosystem more responsive to the evolving needs of market participants,” said Vaisshali Babu, MD & CEO, BSE Clearing Limited.
By providing greater flexibility in contract tenures, the facility will support short-term securities requirements, facilitate greater price alignment and further deepen participation in the SLB market, she added.
NSE Clearing Limited has earlier announced the introduction of shorter-tenure contracts under the Securities Lending and Borrowing (SLB) Scheme from August 17.
—IANS
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