The reserve bank of India (RBI) has announced the rollout 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 are going to be out there to users for transactions from early August, RBI said.
The platform aims to supply transparency of pricing and promote competition among market-makers resulting in better pricing for all customers, no matter order size, by unifying the existing fragmented market micro structure.
The RBI had in October 2017 issued a discussion paper proposing to set up such a platform that might give customers access to an electronic trading platform through an internet-based application on that they may sell or purchase foreign currency at market clearing prices.
This was done with a view to creating the 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.