The circular on operational guidelines for the new forex platform for retail participants shall be issued by June-end, RBI said
The Reserve Bank of India (RBI) on June 6 announced the roll out of a foreign exchange trading platform for retail participants.
The circular on operational guidelines for the platform shall be issued by June-end, it added.
The central bank said that the platform had been developed by the Clearing Corporation of India (CCIL) and was being tested by users. The platform will be available to users for transactions from early August, RBI said.
The platform aims to provide transparency of pricing and promote competition among market-makers leading to better pricing for all customers, regardless of order size, by unifying the existing fragmented market microstructure.
The RBI had in October 2017 issued a discussion paper proposing to set up such a platform that would provide customers access to an electronic trading platform through an internet-based application on which they could sell or purchase foreign currency at market clearing prices.This was done with a view to creating market infrastructure that would “ensure fair and transparent pricing for users of foreign exchange (such as Small and Medium Enterprise (SME) exporters and importers, individuals, etc.)”.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.