RBI reform plan for derivatives: Central bank proposes new norms for novation of OTC derivative contracts, draft guidelines seek to streamline market operations

Reserve Bank of India plans to regulate over-the-counter derivative contracts. Draft directions are released for novation. Novation involves replacing a market maker with a third party. This requires consent from the remaining counterparty. Standard agreements will be developed by FIMMDA and FEDAI. The goal is to streamline regulatory requirements. The current framework is from a 2013 circular.

from Latest Business News Today: Stock Markets, Financial News, India Business & World Business News https://ift.tt/5IlqseY