What changed
The market timing for outright transactions in Government securities, Repo in Government securities, and CBLO that settle on T+1 basis has been reduced from 9:00 AM–5:30 PM to 9:00 AM–5:00 PM. This change synchronizes these markets with the call, notice, term money, and domestic foreign exchange markets, which already operate between 9:00 AM and 5:00 PM. The revision follows representations from market participants that the earlier timing was unduly long, and primary auction results for central government securities are now available around 2:30 PM, providing sufficient trading time.
What it means for you
Banks and lenders trading in government securities, repos, and CBLO will have a shorter daily window for T+1 settlements, reducing operational flexibility by 30 minutes. However, the alignment with money and forex markets may streamline cross-market operations and reduce settlement risks. T+0 transactions and Saturday timings remain unchanged, so intraday liquidity management for same-day settlements is unaffected.
What you must do
- Update internal trading desk schedules and system cut-off times to reflect the new 5:00 PM close for T+1 G-sec, repo, and CBLO trades.
- Ensure NDS, NDS-OM, CROMS, and CBLO platform access is configured for the revised 9:00 AM–5:00 PM window from August 2, 2010.
- Communicate the change to all relevant trading, settlement, and risk management teams to avoid last-minute trade failures.
- Review liquidity and funding plans for T+1 settlements to accommodate the shorter trading day.
Who it affects
All market participants trading in Government securities (outright and repo), CBLO market participants, Banks and primary dealers active in G-sec and money markets, Treasury and back-office teams handling NDS, NDS-OM, CROMS, and CBLO platforms
Why did RBI reduce the trading hours for G-sec, repo, and CBLO markets?
Market participants requested a shorter window, citing that the earlier 9:00 AM–5:30 PM timing was unduly long. Additionally, primary auction results for central government securities are now available around 2:30 PM, giving enough trading time. The change also synchronizes these markets with money and forex markets.
Does this change affect T+0 settlements or Saturday trading?
No. The revised timings apply only to T+1 settlements. Timings for T+0 transactions and Saturday trading remain unchanged.
When does the new timing take effect?
The revised market timing of 9:00 AM to 5:00 PM is effective from August 2, 2010.