What changed
FIMMDA received SEBI approval to set up a corporate bond reporting platform, which will aggregate trades from its own platform as well as BSE and NSE. Starting September 1, 2007, all Primary Dealers are required to report their OTC secondary market corporate bond transactions on this FIMMDA platform.
What it means for you
This move enhances transparency in the corporate bond market by centralizing trade reporting. Primary Dealers must adapt their reporting processes to comply with FIMMDA's platform, which is currently in trial run. The aggregation of data across platforms will provide a more comprehensive view of market activity.
What you must do
- Ensure your firm is ready to report OTC secondary market corporate bond trades on FIMMDA's platform from September 1, 2007.
- Contact FIMMDA directly to participate in mock reporting sessions before the go-live date.
- Review and implement FIMMDA's detailed operational guidelines once issued.
- Coordinate with your IT and compliance teams to integrate with the new reporting system.
Who it affects
All Primary Dealers, FIMMDA, BSE and NSE (as data sources for aggregation)
What is the deadline for Primary Dealers to start reporting on FIMMDA's platform?
The mandate takes effect from September 1, 2007. Primary Dealers must report all OTC secondary market corporate bond transactions on FIMMDA's platform from that date.
Will FIMMDA's platform replace BSE and NSE reporting platforms?
No, FIMMDA will aggregate trades reported on its own platform as well as those on BSE and NSE, adding value to the combined data.
How can Primary Dealers prepare for this change?
Primary Dealers should contact FIMMDA to join mock reporting sessions and await detailed operational guidelines from FIMMDA.