Description
BSE implements operational enhancements to the RFQ platform including mandatory broker execution for OTM transactions and new yield-price calculator functionality, effective October 28, 2025.
Summary
BSE has implemented enhancements to the Request for Quote (RFQ) platform in the debt segment to improve operational efficiency as per SEBI directions. The key changes include removal of manual broker selection for One-to-Many (OTM) transactions and introduction of a yield-price calculator. These enhancements will be effective from October 28, 2025.
Key Points
- Manual selection of broker option for One-to-Many (OTM) transactions has been removed
- Brokered transactions must now be executed by brokers on behalf of participants in OTM mode only
- Other market participants can continue to execute ‘Direct’ transactions in OTM mode
- New yield-price calculator feature added for seamless conversion between clean/dirty price and yield
- Yield-price calculator is in addition to the existing yield calculator on the platform
- Changes implemented as per SEBI recommendations
Regulatory Changes
SEBI has recommended the removal of manual broker selection for OTM transactions on the RFQ platform. This change mandates that all brokered transactions be executed through brokers on behalf of participants in OTM mode only, standardizing the execution process and improving transparency.
Compliance Requirements
- Stockbrokers: Must execute all brokered transactions on behalf of participants in OTM mode only on the RFQ platform
- Market Participants: Should familiarize themselves with the new mandatory OTM execution process for brokered transactions
- All Users: Should understand the new yield-price calculator functionality for price-yield conversions
- Market participants should contact BSE Fixed Income team for clarification on implementation
Important Dates
- Notice Date: October 17, 2025
- Effective Date: October 28, 2025 - All enhancements become operational
Impact Assessment
Operational Impact: Medium - The removal of manual broker selection streamlines the execution process for OTM transactions but requires workflow adjustments by brokers and participants. The mandatory OTM mode for brokered transactions standardizes execution protocols.
Market Impact: Low to Medium - Enhanced operational efficiency on the RFQ platform should improve transparency and compliance. The yield-price calculator adds convenience for participants performing price-yield conversions.
Affected Parties: Primarily stockbrokers executing client trades on the RFQ platform, and other market participants engaged in debt trading. Direct transaction capability remains available for non-brokered OTM trades.
Contact Information: For queries, participants can contact BSE Fixed Income officials (Milind Naik, Harsh Adhiya, Shamal Jadhav, Harshada Mulaye) at provided extension numbers or email fixedIncome@bseindia.com.
Impact Justification
Important operational changes to RFQ platform affecting debt market participants, particularly brokers executing OTM transactions. Medium impact as it changes workflow but improves efficiency per SEBI recommendations.