Up to 40 brokerages face billions of yen in potential losses on over 100,000 retroactive trades they are duty-bound to make after trading was halted last week due to a connection failure.
Tri-party repos allow investors to entrust an agent to handle collateral, reducing settlement failure while ensuring effective coverage of risk exposure.
The measures, though not yet finalised, follow recent concerns about stock trading systems at financial institutions in South Korea.
Jurisdictions are increasingly seeking guidance on implementing legislation to ensure the enforceability of close-out netting, the "single most important risk mitigation tool in derivatives markets".
NSE is the second stock exchange in India to offer commodity trading; licensing agreement will see the exchange use LSE prices for settling various commodity futures contracts.
New legislative revisions could subject illegal short sellers to up to 10 years imprisonment and fines amounting to 1.5 times profits on short selling.
The guidelines set a minimum cap for London-listed firms seeking to issue depository receipts in China, among other requirements.
Trading limits will be based on foreign investors' actual exposure to India’s commodity markets, which needs to be verified and monitored by brokers and exchanges.
The agreement allows eligible funds in Hong Kong and the UK to be distributed in each other’s market through a streamlined process.
Under the 'Voluntary Retention Route', FPIs will be exempt from current caps and concentration limits provided they voluntarily commit to long-term investment in Indian debt.