General

What is RTCM?

RTCM refers to the Reversal Trade Cancellation Mechanism (RTCM). Effective January 13, 2024, RTCM will be implemented in the Equity Derivatives segment. It aims to identify and cancel reversal trades that meet specific conditions during intraday trading. These are transactions between two parties (identified by their PANs or CP Codes) that are matched in a security/ contract amongst each other and reversed subsequently (e.g.: first leg is where PAN “A” is the buyer and PAN “B” is the seller and second leg where PAN “B” is the buyer and PAN “A” is the seller). This mechanism is introduced to prevent any trades that create artificial volume without legitimate market intent. Such practices can distort price discovery and mislead market participants.