NDS electronic order matching rolls out smoothly

Mumbai, Aug 1 | Updated: Aug 2 2005, 05:30am hrs
The electronic order matching trading module for government securities on the Negotiated Dealing System (NDS-OM) kicked off on Monday with a bang, with 46 trades of G-secs worth Rs 250 crore.

An RBI spokesperson told FE on Monday that NDS-OM provides NDS members with a more advanced and more efficient trading platform as recommended by the Working Group on Screen Based trading in Government Securities headed by RH Patil. NDS-OM is a purely a voluntary system and would co-exist with the telephone based trading system as well as the exchange based reporting mechanism. The first day went off smoothly without any technical glitch. The total business in Government securities for the day was Rs.482.68 crore amid 76 trades. The trading was very low due to bad weather conditions in Mumbai. Out of 76 trades, only 29 trades were executed outside the NDS-OM and 19 out of these 29 non-NDS-OM trades were constituent trades. The most liquid security of the day was GS 2021 10.25% with a trading volume of Rs.110 crore. Of this Rs 80 crore was executed in NDS-OM. The weighted average price of the NDS-OM trades in the said security was Rs.125.02 while the The weighted average price of non-NDS-OM trades in the security was Rs.125.47, a spread of Rs.0.45 which could have been saved by the buyers if they would have chosen to trade in new NDS-OM system. During the first phase, the NDS-OM is going to serve the trading requirements of RBI regulated entities like banks, PDs, etc. The option of extending NDS-OM to non-NDS members will be examined by RBI in due course.

NDS-OM is a purely anonymous order driven system with all orders being matched based on strict price/time priority.