**Summary:**
Effective June 27, 2025, a mandatory Common Contract Note (CCN) system utilizing a Single Volume Weighted Average Price (VWAP) will be implemented to enhance ease of doing business for institutional investors and market participants. This policy, PR No.382025, replaces the previous system of separate trade confirmations for each exchange, which led to reconciliation, settlement, and regulatory compliance challenges. Developed in collaboration with stakeholders, this consolidated CCN mechanism provides a uniform VWAP for multi-venue trading, streamlining post-trade reporting by consolidating trades from multiple exchanges into a single document. The reform aims to increase cost efficiency, reduce compliance burdens, and ensure consistent trade reporting aligned with the CC interoperability framework.
Key Entities Referenced
Common Contract Note (CCN): A single consolidated contract note mechanism with uniform VWAP for multivenue trading, designed to simplify post-trade reporting.
Single Volume Weighted Average Price (VWAP): A method for calculating the average price of a security, now uniformly implemented in the Common Contract Note.
institutional investors: A category of investors that the new policy is intended to benefit by promoting ease of doing business.
market participants: Entities involved in trading, who will benefit from the simplified post-trade reporting process.
Mumbai, Maharashtra: The city where the notification was issued.
CC interoperability framework: The framework with which the new trade reporting aims to be aligned.
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
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