In a move aimed at enhancing the ease of doing business for institutional investors and market participants, the Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) has been made mandatory, effective June 27, 2025. This reform addresses previous complexities where separate trade confirmations were required for each exchange, leading to intricate reconciliation, settlement, and regulatory compliance challenges. Following representations from market participants, a consolidated contract note mechanism with uniform VWAP was developed in collaboration with stakeholders for multi-venue trading. This new system is designed to streamline post-trade reporting by consolidating trades across multiple exchanges into a single, harmonized document. The initiative is expected to boost cost efficiency, alleviate the compliance burden for market participants, and ensure consistent trade reporting, aligning with the existing interoperability framework.
Securities and Exchange Board of India
PR No. 38/2025
Common Contract Note with Single Volume Weighted Average Price (VWAP) – Enhancing Ease of Doing Business for Market Participants
In a significant step towards promoting ease of doing business for institutional investors and market participants, Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) has been made mandatory with effect from June 27, 2025.
The erstwhile system required separate trade confirmations for each exchange resulting in complicated reconciliation, settlement, and regulatory compliance. Based on the representation received from market participants, it was decided to provide uniformity in post-trade communication. Accordingly, in collaboration with concerned stakeholders, a single consolidated contract note mechanism with uniform VWAP was conceptualized and developed for multi-venue trading.
The reform will simplify the post-trade reporting process by consolidating trades executed across multiple exchanges into a single, harmonized document, eliminating the need to process multiple contract notes. The move aims at increasing cost efficiency, reducing compliance burden for market participants and ensuring consistent trade reporting aligned with the CC interoperability framework.
Mumbai
July 02, 2025
