OTC EXCHANGE OF INDIA

CIRCULAR

 

Ref. No.: OTC/MO/2003/003

 January 16, 2003 

 Sub: Retail Debt Market.

In accordance with SEBI letter SMD/Policy/GSEC/776/2003 dated January 10, 2003 notifying scheme / guidelines outlining a facility of allowing Stock Exchanges to permit trading in government securities, 'Retail Debt Market' is being introduced by the Exchange w.e.f. January 16, 2003.

 

The RETDEBT Market facility on the OASIS system shall be used for entering transactions in RDM sessions. The RDM sessions shall be held between 10.00 a.m. and 3:30 p.m. There shall be no pre-open in the RDM sessions.

 

The trading system features and user navigation for RETDEBT Market are described below.

 

Operating Range +/-5%

Permitted lot size 10

Tick Size Rs. 0.01

Face Value Rs. 100

Mkt Type Description RETDEBT

Book Type RD

Mkt Type Indicator D

 

Setting up Securities in Market Watch – For setting up securities in the Market Watch screen, the user has to press the function key [F4], enter the required details in Symbol, Series and Market Type fields and press [Enter]. The default option displayed in the market type field is ‘N’. This can be changed to ‘D’ using the Up/Down arrow keys.

 

Order Entry – Buy/ Sell orders can be entered in RETDEBT Market using the function keys [F1] and [F2] and selecting ‘RD’ in the Book Type field. With respect to orders in the RETDEBT Market members may note the following:

 

Quantity – Order quantity should be in multiples of Market Lot. Quantity conditions such as MF, AON and DQ are not allowed.

 

Price - Members can enter either market orders or limit price orders. Order price for limit price orders should be in multiples of tick size

PRO/CLI/WHS – In the Pro/Cli/Whs field only ‘Pro’ and ‘Cli’ orders are allowed. ‘WHS’ option is not available.

 

Time Conditions – Members can specify time conditions as ‘Day’ or ‘IOC’.

 

Participant Code – A valid Participant Code can be entered in this field.

 

Order Cancellation/Modification – Order cancellation and modification is allowed for orders entered in the RETDEBT Market. Both Single and Quick Order Cancellation functions are available. In order to effect Quick Cancellation of orders for a security in RETDEBT Market, a member has to press [Shift+F3] to invoke Quick Order Cancellation screen and select ‘RD’ in the Book Type field. Quick Cancellation can also be done for all securities in the RETDEBT Market by selecting the Book Type as ‘RD’ and other parameters as relevant.

 

MBP - Member can query order information for the RETDEBT Market in MBP by selecting ‘RETDEBT’ as book type in the selection screen. Orders are stacked according to price in MBP. The high, low, last trade price, percentage change and average trade price figures are calculated with respect to trades in RETDEBT Market.

 

Market Inquiry - Security statistics for RETDEBT market can be viewed by selecting ‘RETDEBT’ as market type.

 

Outstanding Orders/Activity log/ Previous Trade - Outstanding order/ Activity log/ Previous Trade information in a particular security can be viewed for RETDEBT Market by selecting the book type ‘RETDEBT’ in the respective selection screens.

 

Order and Trade Confirmation Slips - The order confirmation slip for orders entered in RETDEBT Market displays ‘RD’ as Book Type field. Similarly, trade confirmation slip generated for RETDEBT Market trades show ‘D’ in the Market Type field.

 

Net Position – The Net Position screen displays consolidated statistics for all markets as well as separately for each market.

 

Market Movement – Market Movement statistics for a security can be viewed by selecting market type as ‘RETDEBT’.

 

Most Active Securities – This screen display consolidated statistics i.e. Traded value, traded quantity, no of trades for a security across the markets. However, price statistics displayed in this screen are with respect to Normal Market only.

 

On-line Backup – In the On-line Backup function a facility is provided to select order/trades based on Market Type. Alternately, members can take a backup for all markets by selecting ‘All’ in the Market Type field.

 

Full Message Display – In Full Message Display, messages can be filtered on Symbol and Series. The option to filter messages for a market type is presently not available.

 

Offline Order Entry – This function is available for RETDEBT Market. The structure for the input file is given in the online help.

 

Branch/User Order Value Limit - Branch/User Order Limit is applicable for a particular Branch/User for orders across all Markets.

 

Securities Order Quantity Limit - Securities Order Quantity Limit is applicable for a particular security across all Markets.

 

Order Limits - Order limits set by a user are applicable for a single order across all Markets.

 

Ticker Selection – A facility is provided for filtering securities in the ticker for RETDEBT market.

 

Reports – Trades report generated for members i.e. Trades Done, Order Log and Open Orders report, displays records in ascending order of security name. Within a security records are displayed by Market Type.

 

For and on behalf of

OTC Exchange of India Limited

 

 

 

R.Anand

Asst. Vice President