Scripless trading of government bonds is likely to be delayed till October after a delay in pushing through legal changes.
The Registered Stock and Securities Ordinance which was originally scheduled to have been changed in time for scripless trading to start in on September 09, failed to receive cabinet approval in time.rn
rnldblquote But the Real Time Gross Settlement system will go on line on schedule,
dblquote Central Banks Deputy Governor W A Wijewardene said.rn
The infrastructure for the scripless trading and settlement is also expected to be ready by the original timeframe, though trading can start only after the laws are passed by Parliament.rn
rnThe Rs. 900 mn RTGS system comes with a depository and settlement system for scripless trading but it does not actually have an integrated front-end trading interface, or a communications backbone.rn
Bond dealers rely on SWIFT for messaging and Bloomberg terminals for trading. All this has pushed up trading costs.rnCentral Banks securities depository will charge Rs. 300 per transaction and SWIFT messaging is expected to cost and additional Rs. 45 to Rs. 60.rn