The Reserve Bank of India (RBI) released the draft report of the Internal Working Group on “Comprehensive Review of Market Timings”.
Last year, RBI has set up an internal working group for the purpose,
- To study the current timings of various financial markets regulated by the Reserve Bank, including instruments traded on exchanges;
- To examine the implications, including benefits and costs, of revision in current timings for trading as well as for supporting payment and settlement arrangements; and,
- For making recommendations in respect of timings for trading, clearing and settlement arrangements as well as for any related aspect of market functioning.
- The RBI was receiving requests for extension of timings for markets such as currency futures and Over-the-Counter (OTC) foreign exchange market.
- In August, 2018, it announced for setting up an Internal Working Group (IWG), which includes officials of Departments of the Reserve Bank –
- Purpose is to review the timings of various markets and the associated payment and settlement infrastructure.
- Forex Market : It has been suggested to extend the market hours from 9 am to 9 pm for both over the counter and exchange trade. (Current timings to close the market is 5 pm).
- Money Market : Call market timings may be extended till 6:00 pm.
- G-sec Market : There was not much demand for extending the timings of G-sec market. Hence, it could remain the same as current timings.
The draft report further said “ That the extended timings of the market is expected to provide benefits like better pricing of post market hours information/data, improved onshore price discovery, and possible shift of offshore volumes to onshore”. On the other hand, it may entail higher costs to stakeholders.
The RBI has invited comments from market participants and other interested parties on the draft report latest by July 31, 2019.
How to make Feedback: Feedback on the draft report may be forwarded to:
The Chief General Manager,
Reserve Bank of India Financial Markets Regulation Department 1st Floor,
Main Building Shahid Bhagat Singh Marg,
Fort, Mumbai – 400001
by email with subject line “Feedback on draft report on market timings”.