IFSCA has vide its circular dated 22nd June, 2021 introduced a concept of negotiated large trade (NLT) facility in the stock exchanges situated in IFSC i.e. at GIFT City, Ahmedabad. The facility is applicable only for derivatives on its stock exchanges. The salient features of this facility is given below:
a) The NLT Window shall be open throughout normal trading hours of the stock exchanges.
b) The orders placed shall be within +/- 1% of the applicable Reference price. The Reference price shall be the Volume Weighted Average Price (VWAP) of trades executed in the 30 minutes preceding the NLT order execution.
c) The minimum order size in terms of notional value, for execution of trades, shall be USD 1 million.
d) The NLT transactions shall not be considered for calculation of the daily Open, High, Low, Close (OHLC), VWAP or Daily Settlement Price (DSP) or the Final Settlement Price (FSP) of the derivatives contract for which the transaction has been executed.
e) The NLT trades on behalf of clients shall not be executed against the trading member’s own account. The Trading Members shall execute NLT trades on behalf of their clients only after obtaining explicit written consent from their respective clients.
f) The position limits applicable to the normal market shall be applicable to the NLT window.
g) The Stock Exchange shall ensure that all appropriate trading and settlement practices as well as surveillance and risk containment measures as applicable to the normal trading segment are made applicable and implemented with respect to the NLT window.
h) The Stock Exchange shall disseminate details of the NLT trades to the public on the same day, after the market hours.
Copy of the circular can be found at the IFSCA site https://ifsca.gov.in/Circular