“There is a need for effective market-making and better pricing for smaller deals on NDS-OM. “Differences in pricing in the foreign exchange (FX) markets for small and large clients may be justified by operational considerations,” the RBI Governor said in his address at an international financial conference in Barcelona.
“Banks may need to do more to facilitate the use of FX retail platforms. We see that banking channels are being used by some individuals or entities to finance activities on unauthorized FX trading platforms. This warrant increases the vigilance of banks,'' he said.He said efforts are being made to leverage technology to meet the objectives of market reforms as well as achieve greater efficiency.
For example, we are exploring the use of technology platforms to expand the reach of financial markets, particularly RBI Retail Direct and FX Retail. In the derivatives markets, efforts are underway to launch electronic trading platforms for a larger number of derivative products and expand central clearing of products,” he explained.
Das also said that to promote greater efficiency, application programming interfaces (APIs) for reporting trades to NDS-OM and accessing RFQ dealin mode are being considered.
The introduction of bond forwards is being considered to enable long-term investors to efficiently manage their interest rate risks – draft guidelines in this regard were released in December 2023.He said the Reserve Bank is also engaged with stakeholders to assess the need for introduction of new products and infrastructure based on emerging market developments.
“Banks may need to do more to facilitate the use of FX retail platforms. We see that banking channels are being used by some individuals or entities to finance activities on unauthorized FX trading platforms. This warrant increases the vigilance of banks,'' he said.He said efforts are being made to leverage technology to meet the objectives of market reforms as well as achieve greater efficiency.
For example, we are exploring the use of technology platforms to expand the reach of financial markets, particularly RBI Retail Direct and FX Retail. In the derivatives markets, efforts are underway to launch electronic trading platforms for a larger number of derivative products and expand central clearing of products,” he explained.
Das also said that to promote greater efficiency, application programming interfaces (APIs) for reporting trades to NDS-OM and accessing RFQ dealin mode are being considered.
The introduction of bond forwards is being considered to enable long-term investors to efficiently manage their interest rate risks – draft guidelines in this regard were released in December 2023.He said the Reserve Bank is also engaged with stakeholders to assess the need for introduction of new products and infrastructure based on emerging market developments.
