What is interoperability of exchanges and how does this affect my Equity and F&O trading?

In a nutshell, Interoperability of exchanges refers to the ability of different exchanges to work together seamlessly. This allows for a more efficient and streamlined trading process, as it eliminates the need of multiple clearing corporations and provides access to traders a wide range of markets. It was proposed by SEBI. (A clearing corporation ensures the settlement of your stocks and funds for each trading day).

Currently, NSE trades are cleared through NSE Clearing Limited, and BSE trades are cleared through ICCL (Indian Clearing Corporation Limited). Interoperability among clearing corporations ensures that trades executed on both the NSE and the BSE (Equity, CDS, and NFO) are settled by a single clearing corporation. The trades placed on Tiqs are cleared through NSE Clearing Limited. Tiqs intends to implement interoperability as follows:

• Changes to ledger posting and the format of contract notes.

Currently, if a client trades on the NSE or BSE, he will see two obligation entries on his ledger, one for each exchange. Following the implementation of interoperability, he sees only one entry for equity trades (NSE+BSE), one entry for F&O, and one entry for CDS.

In addition, the contract note format has changed slightly. We currently group trades based on the Exchange and based on the instrument after the migration to interoperability.