Millennium Post

BSE norms to curb currency derivative trade reversals

The exchange has already implemented this measure in the equity derivatives segment from March. The new mechanism is aimed at preventing potential cases of trade reversal taking place on the exchange’s trading platform which may have been undertaken for the purposes of tax evasion.

 In a circular, BSE said it plans to implement the new mechanism in “currency derivatives segment with effect from Monday, June 6, 2016.” 

Besides, a mock trading is scheduled for June 4 to enable the trading members conduct necessary testing of their trading applications for this check. Reversal of trade implies that for a buy transaction initially entered into by a broker for a particular client for a specific quantity, there is a corresponding sale transaction which takes place during the day for the same quantity between the same set of broker/clients and vice-versa.
PTI

PTI

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