This is with reference to SEBI circular no. SEBI/HO/MRD/MRD-RAC-1/P/CIR/2022/131, dated September 29, 2022, regarding Participation of SEBI registered Foreign Portfolio Investors (FPIs) in Exchange Traded Commodity Derivatives in India. Accordingly, it is proposed to make the following enhancements in the trading system for Commodity Derivatives segment –
1. Rationalisation of Client Types
2. Facility to enter custodial participant code (CP code) when placing orders
Highlights of these enhancements are as follows –
1. Rationalisation of Client Types
- Currently, there are 4 client types, namely CLIENT, OWN, INST and SPLCLI, from which members have to select one suitable client type when placing an order.
- Going ahead, there shall be only 2 client types, namely CLIENT & OWN in Commodity Derivatives segment.
- For custodial participant orders, members shall be able to provide a CP code along with selecting client type as CLIENT.
- There shall be no impact of this change on the client code modification activity (Trade Modification facility in RTRMS-ZT system).
- There shall be no impact of this change on the client code registration process available in the UCC system, which is governed by guidelines as prescribed by Exchange’s Inspection team.
2. Facility to provide custodial participant code (CP code) when placing orders
- Trading members shall be able to enter custodial participant code (CP code) when placing orders for those clients whose trades are settled by their clearing member and not by the trading member.
- Only valid CP codes, as assigned by Clearing Corporations, shall be allowed.
- This facility shall be available for orders submitted with client type CLIENT only. It shall not be available for client type OWN.
- A Participant Master file consisting of all valid CP codes assigned by the Clearing Corporations shall be made available to members on daily basis which can be used in front-end trading applications. Kindly refer to the enclosed Annexure for participant master file format & sample file which shall be made live from Friday September 15, 2023, end of day.
- At the order level, members shall be able to modify CP code for fully pending orders only through the existing order modification process. It will not be allowed for partially traded orders.
- On post trade basis, members shall be able to modify CP code in trade using the facility provided by the Clearing Corporation where the trading member and its clearing member are registered for clearing and settlement.
There is no change in the existing ETI API formats, except that client types – ‘INST’ & ‘SPLCLI’ shall not be applicable. This is similar to the functionality already implemented in the Equity segment (for more details, please refer circular no. 20200911-47, dated September 11, 2020). New version of ETI API document, ver.1.6.7 highlighting the same is available on the Exchange website on the following webpage - https://www.bseindia.com/nta.aspx.
Trading members and front-end trading application vendors are requested to take note of the above-mentioned enhancement and initiate development in their respective front-end trading application to use the client types suitably. This enhancement shall be available in the test environment from Monday, September 04, 2023, onwards.
Further, front-end trading application vendors are also advised to ensure that the features mentioned above are made available in their respective trading application provided to the trading members from the effective go-live date.
Trading members are requested to note that this enhancement shall be implemented in the live environment for trading in Commodity Derivatives segments with effect from Monday, September 18, 2023. To facilitate rollout of the same to market participants, mock trading session shall be conducted in the live environment for testing on Saturday, September 16, 2023.
In case of any queries, trading members may kindly contact their respective Relationship Manager or IML Info, BSE Tech support teams as per the email id and contact details given below –
For and on behalf of BSE Ltd.,
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Vivek Garg
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Tejash Somaiya
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Sr. General Manager
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General Manager
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Trading Development
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Trading Development
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August 24, 2023 |