The Reserve Bank introduced the Negotiated Dealing System-Order Matching system or NDSOM, as it is called, in August 2005. It is an electronic, screen based, anonymous, order driven trading system for dealing in Government securities. The Reserve Bank owns NDS-OM and CCIL maintains it. The platform is in addition to the existing facility of over-the-counter (OTC) or phone market in Government securities
The NDS-OM brings transparency in secondary market transactions in Government securities. Members can place bids (buy orders) and offers (sell orders) directly on the NDS-OM screen. The NDS-OM also facilitates straight-through-processing (STP), that is, all the trades on the system are automatically sent to the CCIL for settlement.
Participants on NDS-OM: There are two kinds of participants in NDS-OM:direct and indirect. Direct members have current and SGL accounts with the Reserve Bank and settle their trades on NDS-OM directly. Indirect members are those players who do not have current and SGL accounts with the Reserve Bank and therefore have to trade on NDS-OM through members who have these accounts with the Reserve Bank