ENA Sectors 2019-07-11 11:21:22 <p><strong>New Delhi, July 11 (KNN)</strong> The Reserve Bank of India (RBI) Internal Working Group has released its draft report on Comprehensive Review of Market Timings, suggesting that over-the counter (OTC) forex and exchange traded currency derivatives market hours be extended from 9 am to 9 pm from the current 9 am to 5 pm window.</p> <p>The draft of the report said While the extension of market timings is expected to provide benefits such as better pricing of post market hours information/data, improved onshore price discovery, and possible shift of offshore volumes to onshore, there is a view that it may entail higher costs to stakeholders.</p> <p>However, since RBI is in the process of reviewing and rationalizing foreign exchange regulations to provide flexibility in terms of choice of products, participation, positions, etc., both for residents and non-residents, extension of market hours would complement these policy measures. Thus, calibrated extension of market hours, and to begin with revised market timings of 9am-9 pm, may be considered to gauge demand and potential benefits, it added.</p> <p>An internal working group was set up by RBI last year to study the current timings of various financial markets regulated by the Reserve Bank, including instruments traded on exchanges; examine the implications, including benefits and costs, of revision in current timings for trading as well as for supporting payment and settlement arrangements; and, make recommendations in respect of timings for trading, clearing and settlement arrangements as well as for any related aspect of market functioning.</p> <p>The committee recommended that the timings for both inter-bank and client segments may be extended and the current gap of 30 minutes between inter-bank and client segments may be maintained to allow banks to manage their risks.</p> <p>With extension in RTGS customer window till 6:00 pm, the timings for collateralized money market segments (market repo and TREPS) may be extended till 4:00 pm, the draft suggested.</p> <p>To streamline benchmark rate calculation, cut-off time for Commercial Paper (CP) and Certificate of Deposits (CD) secondary market trading should be fixed at 5:00 pm, thereby aligning it with other segments, Working Group recommended.</p> <p>The RBI has invited comments from market participants and other interested parties on the draft report latest by July 31, 2019.</p> <p><iframe frameborder="0" height="540" id="mgiframe" src="//mg.mgid.com/mghtml/framehtml/c/k/n/knnindia.co.in.338951.html" width="100%"></iframe></p> 23160 https://knnindia.co.in/news/newsdetails/sectors/rbi-releases-draft-report-on-comprehensive-review-of-market-timings 2019-07-11 11:21:22 knnindia.co.in