After extending the deadline five times, the Securities & Exchange Board of India has finally made a common contract note mandatory across the exchanges with effect from June 27, a press release said on Wednesday.
This move may benefit the BSE. A Jefferies report said last month that implementation of a common contract note will boost BSE’s market share in the cash segment and mitigate the impact from shift in derivatives expiry day to Thursday.
The exchange’s CEO, Sundararaman Ramamurthy, said in an interview that separate common contract notes for the exchanges is one of the headwinds BSE faces in attaining a level playing field.
The SEBI release said, “The erstwhile system required separate trade confirmations for each exchange, resulting in complicated reconciliation, settlement and regulatory compliance.”
“The reform will simplify the post-trade reporting process by consolidating trades executed across multiple exchanges into a single, harmonised document, eliminating the need to process multiple contract notes,” SEBI said. “The move aims at increasing cost efficiency, reducing compliance burden for market participants and ensuring consistent trade reporting aligned with the CC interoperability framework.”