What changed
RBI mandated reporting of all OTC secondary market transactions in Certificates of Deposit and Commercial Papers on the FIMMDA platform, effective July 1, 2010. This follows the Annual Policy Statement 2010-11 announcement and FIMMDA's readiness to extend its corporate bond reporting platform to these instruments.
What it means for you
Banks and other regulated entities now have a strict 15-minute window to report CD and CP trades, enhancing market transparency and price discovery. Non-compliance could attract regulatory scrutiny, so trade capture and reporting systems must be aligned with FIMMDA's procedures.
What you must do
- Ensure your trade reporting systems can capture OTC CD and CP transactions and submit them to the FIMMDA platform within 15 minutes of execution.
- Coordinate with FIMMDA to obtain detailed reporting procedures and technical access for your dealing room or treasury team.
- Train relevant staff on the new reporting timeline and data fields required for online dissemination.
- Review internal controls to avoid delays or errors in reporting, as this is a regulatory mandate effective July 1, 2010.
Who it affects
All RBI-regulated entities dealing in CDs and CPs, Treasury and dealing room operations of banks, Primary dealers and other financial institutions trading in money market instruments
What is the deadline for reporting OTC CD and CP trades?
All OTC transactions in CDs and CPs must be reported on the FIMMDA platform within 15 minutes of the trade execution.
Which platform should we use for reporting?
The FIMMDA reporting platform, which already handles corporate bond reporting, has been extended to cover CDs and CPs. FIMMDA will provide detailed procedures.
Does this apply to all secondary market transactions?
Yes, the mandate covers all secondary market OTC transactions in Certificates of Deposit and Commercial Papers, effective July 1, 2010.