BSE Clearing Launches 3-Day SLB Contracts for Flexibility
By Market Desk
BSE Clearing Ltd enhances market flexibility with new three-working-day contracts in its Securities Lending and Borrowing (SLB) segment, featuring T+1 and T+3 settlement.
BSE Clearing Ltd, the clearing corporation of BSE, has introduced three-working-day contracts within its Securities Lending and Borrowing (SLB) segment. These shorter-tenor contracts went live on Monday, aiming to boost market flexibility.
The new contracts feature a T+1 settlement for the first leg, with the reverse leg settling on a T+3 basis, excluding any settlement holidays. Initially, these short-term instruments are accessible for securities already eligible in the Futures and Options segment, identified by a ‘D’ series prefix.
Contract Mechanics
The SLB platform continues to operate an automated, screen-based order matching system based on price-time priority. This mechanism ensures efficient execution while maintaining specific operational parameters.
- No foreclosure in the event of an AGM or EGM.
- No facilities available for repayment, recall, or rollover.
This initiative by BSE Clearing Ltd is designed to make the securities lending ecosystem more responsive to the evolving needs of market participants. It specifically targets the support of short-term requirements.
Market Enhancements
- Enhance flexibility for short-term securities borrowing and delivery.
- Facilitate inter-exchange arbitrage opportunities.
- Improve price alignment across various trading venues.
The introduction of these three-day contracts is expected to deepen participation in the SLB market. This move aligns with broader goals to support dynamic trading strategies within the Indian financial landscape.