Now Reading: NSE Clearing to launch shorter SLB contracts with T+3 settlement
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NSE Clearing to launch shorter SLB contracts with T+3 settlement
NSE Clearing to launch shorter SLB contracts with T+3 settlement
NSE Clearing will introduce daily shorter-tenure contracts under its Securities Lending and Borrowing scheme from August 17, with the reverse leg settling on the third day after the transaction, excluding settlement holidays.…
The Story in Brief
NSE Clearing will introduce daily shorter-tenure contracts under its Securities Lending and Borrowing scheme from August 17, with the reverse leg settling on the third day after the transaction, excluding settlement holidays. The first leg will continue to settle on T+1.
The R3 contracts will be available only for stocks eligible in the Equity Derivatives Segment. They will not be foreclosed for annual or extraordinary general meetings, but participants cannot use repay, recall or rollover facilities. Existing SLB contracts have tenures from three days to 12 months and follow fixed monthly reverse-settlement dates.
The Indian Opinion
Claims that the change will transform stock lending overnight would be overstated. The facility covers a limited set of eligible stocks and removes useful features such as early recall and rollover. Its practical value will depend on whether borrowers and lenders use the shorter window at competitive fees. Trading volumes and lending fees in the R3 series after August 17 will provide the clearest test.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
